Correlation Between Symmetry Panoramic and Western Asset

Can any of the company-specific risk be diversified away by investing in both Symmetry Panoramic 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 Symmetry Panoramic and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Symmetry Panoramic Fixed and Western Asset High, you can compare the effects of market volatilities on Symmetry Panoramic 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 Symmetry Panoramic with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symmetry Panoramic and Western Asset.

Diversification Opportunities for Symmetry Panoramic and Western Asset

-0.4

Correlation Coefficient

Symmetry Panoramic  Western Asset

Very good diversification

The 3 months correlation between Symmetry and Western is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Symmetry Panoramic Fixed and Western Asset High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset High and Symmetry Panoramic 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 Symmetry Panoramic Fixed 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 High has no effect on the direction of Symmetry Panoramic i.e., Symmetry Panoramic and Western Asset go up and down completely randomly.

Pair Corralation between Symmetry Panoramic and Western Asset

Assuming the 90 days horizon Symmetry Panoramic Fixed is expected to under-perform the Western Asset. In addition to that, Symmetry Panoramic is 1.88 times more volatile than Western Asset High. It trades about -0.16 of its total potential returns per unit of risk. Western Asset High is currently generating about 0.11 per unit of volatility. If you would invest  700.00  in Western Asset High on September 14, 2024 and sell it today you would earn a total of  8.00  from holding Western Asset High or generate 1.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Symmetry Panoramic Fixed  vs.  Western Asset High

Symmetry Panoramic Fixed

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Symmetry Panoramic Fixed has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental drivers, Symmetry Panoramic is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Western Asset High

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Western Asset High are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Western Asset is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Symmetry Panoramic and Western Asset

The main advantage of trading using opposite Symmetry Panoramic and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symmetry Panoramic 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 Symmetry Panoramic Fixed and Western Asset High 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..