Correlation Between Western Asset and PAMT P

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

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

Diversification Opportunities for Western Asset and PAMT P

-0.35

Correlation Coefficient

Western Asset  PAMT P

Very good diversification

The 3 months correlation between Western and PAMT is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Investment and PAMT P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PAMT P and Western Asset 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 Western Asset Investment are associated (or correlated) with PAMT P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PAMT P has no effect on the direction of Western Asset i.e., Western Asset and PAMT P go up and down completely randomly.

Pair Corralation between Western Asset and PAMT P

Considering the 90-day investment horizon Western Asset Investment is expected to generate 0.16 times more return on investment than PAMT P. However, Western Asset Investment is 6.06 times less risky than PAMT P. It trades about -0.02 of its potential returns per unit of risk. PAMT P is currently generating about -0.11 per unit of risk. If you would invest  1,666  in Western Asset Investment on August 3, 2025 and sell it today you would lose (3.00) from holding Western Asset Investment or give up 0.18% of portfolio value over 90 days.

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

Western Asset Investment  vs.  PAMT P

Western Asset Investment

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Western Asset Investment are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong technical and fundamental indicators, Western Asset is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

PAMT P

Risk-Adjusted Performance

Weakest

Over the last 90 days PAMT P has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's primary indicators remain comparatively stable which may send shares a bit higher in December 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Western Asset and PAMT P

The main advantage of trading using opposite Western Asset and PAMT P positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, PAMT P 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 PAMT P will offset losses from the drop in PAMT P's long position.

The idea behind Western Asset Investment and PAMT P 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.