Correlation Between Macquariefirst and Western Asset

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

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

Diversification Opportunities for Macquariefirst and Western Asset

0.0

Correlation Coefficient

Macquariefirst  Western Asset

Pay attention - limited upside

The 3 months correlation between Macquariefirst and Western is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Macquariefirst Tr Global 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 Macquariefirst 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 Macquariefirst Tr Global 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 Macquariefirst i.e., Macquariefirst and Western Asset go up and down completely randomly.

Pair Corralation between Macquariefirst and Western Asset

If you would invest  372.00  in Western Asset High on March 2, 2025 and sell it today you would earn a total of  46.00  from holding Western Asset High or generate 12.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Macquariefirst Tr Global  vs.  Western Asset High

Macquariefirst Tr Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days Macquariefirst Tr Global has generated negative risk-adjusted returns adding no value to fund investors. In spite of rather sound technical and fundamental indicators, Macquariefirst is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Western Asset High

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Macquariefirst and Western Asset

The main advantage of trading using opposite Macquariefirst and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macquariefirst 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 Macquariefirst Tr Global 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.