Correlation Between Aqr International and Legg Mason
Can any of the company-specific risk be diversified away by investing in both Aqr International and Legg Mason 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 Aqr International and Legg Mason into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr International Defensive and Legg Mason Partners, you can compare the effects of market volatilities on Aqr International and Legg Mason 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 Aqr International with a short position of Legg Mason. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr International and Legg Mason.
Diversification Opportunities for Aqr International and Legg Mason
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aqr and Legg is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aqr International Defensive and Legg Mason Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Legg Mason Partners and Aqr International 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 Aqr International Defensive are associated (or correlated) with Legg Mason. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Legg Mason Partners has no effect on the direction of Aqr International i.e., Aqr International and Legg Mason go up and down completely randomly.
Pair Corralation between Aqr International and Legg Mason
If you would invest 1,462 in Aqr International Defensive on November 18, 2024 and sell it today you would earn a total of 79.00 from holding Aqr International Defensive or generate 5.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr International Defensive vs. Legg Mason Partners
Performance |
| Timeline |
| Aqr International |
| Legg Mason Partners |
Aqr International and Legg Mason Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr International and Legg Mason
The main advantage of trading using opposite Aqr International and Legg Mason positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr International position performs unexpectedly, Legg Mason 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 Legg Mason will offset losses from the drop in Legg Mason's long position.| Aqr International vs. T Rowe Price | Aqr International vs. Rbc China Equity | Aqr International vs. Old Westbury Fixed | Aqr International vs. Goldman Sachs Mlp |
| Legg Mason vs. Diversified International Fund | Legg Mason vs. Aqr Diversified Arbitrage | Legg Mason vs. Jpmorgan Diversified Fund | Legg Mason vs. Davenport Small Cap |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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