Western Asset Bond Positions Weight vs. Cash Position Weight

WAFAX Fund  USD 9.44  0.04  0.43%   
Based on Western Asset's profitability indicators, Western Asset Inflation may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Western Asset's ability to earn profits and add value for shareholders.
For Western Asset profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Western Asset to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Western Asset Inflation utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Western Asset's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Western Asset Inflation over time as well as its relative position and ranking within its peers.
  
Check out Your Current Watchlist.
Please note, there is a significant difference between Western Asset's value and its price as these two are different measures arrived at by different means. Investors typically determine if Western Asset is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Western Asset's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Western Asset Inflation Cash Position Weight vs. Bond Positions Weight Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Western Asset's current stock value. Our valuation model uses many indicators to compare Western Asset value to that of its competitors to determine the firm's financial worth.
Western Asset Inflation is presently regarded as number one fund in bond positions weight among similar funds. It also is presently regarded as number one fund in cash position weight among similar funds creating about  0.20  of Cash Position Weight per Bond Positions Weight. The ratio of Bond Positions Weight to Cash Position Weight for Western Asset Inflation is roughly  4.92 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Western Asset's earnings, one of the primary drivers of an investment's value.

Western Cash Position Weight vs. Bond Positions Weight

Percentage of fund asset invested in fixed income securities. About 30% of U.S. mutual funds invest in bonds.

Western Asset

Bond Percentage

 = 

% of Bonds

in the fund

 = 
5.07 %
Funds that have over 60% of asset value invested in bonds or or other fixed income securities would usually attract conservative investors.
Percentage of fund asset invested in cash equivalents or risk-free instruments. About 40% of all global funds carry cash on their balance sheet.

Western Asset

Cash Percentage

 = 

% of Cash

in the fund

 = 
1.03 %
Funds or ETFs that have over 40% of their value invested in low-risk instruments or cash equivalents typically attract conservative investors.

Western Cash Position Weight Comparison

Western Asset is currently under evaluation in cash position weight among similar funds.

Western Asset Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Western Asset, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Western Asset will eventually generate negative long term returns. The profitability progress is the general direction of Western Asset's change in net profit over the period of time. It can combine multiple indicators of Western Asset, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
The fund normally invests at least 80 percent of its net assets in inflation-indexed fixed income securities and at least 70 percent of its net assets in U.S. Treasury Inflation Protected Securities. Although the fund may invest in securities of any maturity, the fund will normally maintain a dollar-weighted average effective duration, as estimated by the funds subadvisers, within 3 years of that of its benchmark, the Bloomberg U.S. Treasury U.S. TIPS.

Western Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Western Asset. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Western Asset position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Western Asset's important profitability drivers and their relationship over time.

Use Western Asset in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Western Asset position performs unexpectedly, the other equity 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 appreciate offsetting losses from the drop in the long position's value.

Western Asset Pair Trading

Western Asset Inflation Pair Trading Analysis

The ability to find closely correlated positions to Western Asset could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Western Asset when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Western Asset - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Western Asset Inflation to buy it.
The correlation of Western Asset is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Western Asset moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Western Asset Inflation moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Western Asset can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Western Asset position

In addition to having Western Asset in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Long Short Funds Thematic Idea Now

Long Short Funds
Long Short Funds Theme
Funds or Etfs that are designed to hedge away market risk by investing in combination of bonds, stocks, derivative instruments as well as short positions to maximize returns irrespective of market conditions. The Long Short Funds theme has 41 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Long Short Funds Theme or any other thematic opportunities.
View All  Next Launch

Other Information on Investing in Western Mutual Fund

To fully project Western Asset's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Western Asset Inflation at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Western Asset's income statement, its balance sheet, and the statement of cash flows.
Potential Western Asset investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Western Asset investors may work on each financial statement separately, they are all related. The changes in Western Asset's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Western Asset's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
Bonds Directory
Find actively traded corporate debentures issued by US companies
Stocks Directory
Find actively traded stocks across global markets