Correlation Between Brandywineglobal and Western Asset

Can any of the company-specific risk be diversified away by investing in both Brandywineglobal and Western Asset at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Brandywineglobal and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Brandywineglobal Globalome Opportunities and Western Asset Global, you can compare the effects of market volatilities on Brandywineglobal and Western Asset and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Brandywineglobal with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brandywineglobal and Western Asset.

Diversification Opportunities for Brandywineglobal and Western Asset

0.68

Correlation Coefficient

Brandywineglobal  Western Asset

Poor diversification

The 3 months correlation between Brandywineglobal and Western is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Brandywineglobal Globalome Opp and Western Asset Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Global and Brandywineglobal is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Brandywineglobal Globalome Opportunities are associated (or correlated) with Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Global has no effect on the direction of Brandywineglobal i.e., Brandywineglobal and Western Asset go up and down completely randomly.

Pair Corralation between Brandywineglobal and Western Asset

Considering the 90-day investment horizon Brandywineglobal Globalome Opportunities is expected to generate 0.94 times more return on investment than Western Asset. However, Brandywineglobal Globalome Opportunities is 1.07 times less risky than Western Asset. It trades about 0.07 of its potential returns per unit of risk. Western Asset Global is currently generating about 0.05 per unit of risk. If you would invest  802.00  in Brandywineglobal Globalome Opportunities on September 5, 2024 and sell it today you would earn a total of  47.00  from holding Brandywineglobal Globalome Opportunities or generate 5.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Brandywineglobal Globalome Opp  vs.  Western Asset Global

Brandywineglobal Glo

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Brandywineglobal Globalome Opportunities are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. Despite nearly stable basic indicators, Brandywineglobal is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Western Asset Global

Risk-Adjusted Performance

2 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Western Asset Global are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. Despite fairly strong technical indicators, Western Asset is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Brandywineglobal and Western Asset

The main advantage of trading using opposite Brandywineglobal and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brandywineglobal position performs unexpectedly, Western Asset can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Western Asset will offset losses from the drop in Western Asset's long position.

The idea behind Brandywineglobal Globalome Opportunities and Western Asset Global pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.