Correlation Between Dataax and Western Asset

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

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

Diversification Opportunities for Dataax and Western Asset

0.0

Correlation Coefficient

Dataax  Western Asset

Pay attention - limited upside

The 3 months correlation between Dataax and Western is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dataax and Western Asset Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Diversified and Dataax 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 Dataax 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 Diversified has no effect on the direction of Dataax i.e., Dataax and Western Asset go up and down completely randomly.

Pair Corralation between Dataax and Western Asset

If you would invest  1,458  in Western Asset Diversified on May 28, 2025 and sell it today you would earn a total of  39.00  from holding Western Asset Diversified or generate 2.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Dataax  vs.  Western Asset Diversified

Dataax

Risk-Adjusted Performance

Solid

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

Western Asset Diversified

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Western Asset Diversified are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward 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 Dataax and Western Asset

The main advantage of trading using opposite Dataax and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dataax 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 Dataax and Western Asset Diversified 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.

Check out your portfolio center.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.