Correlation Between Artisan Global and Legg Mason
Can any of the company-specific risk be diversified away by investing in both Artisan Global 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 Artisan Global and Legg Mason into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Global Equity and Legg Mason Partners, you can compare the effects of market volatilities on Artisan Global 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 Artisan Global with a short position of Legg Mason. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Global and Legg Mason.
Diversification Opportunities for Artisan Global and Legg Mason
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ARTISAN and Legg is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Global Equity 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 Artisan Global 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 Artisan Global Equity 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 Artisan Global i.e., Artisan Global and Legg Mason go up and down completely randomly.
Pair Corralation between Artisan Global and Legg Mason
Assuming the 90 days horizon Artisan Global Equity is expected to generate 0.65 times more return on investment than Legg Mason. However, Artisan Global Equity is 1.55 times less risky than Legg Mason. It trades about 0.07 of its potential returns per unit of risk. Legg Mason Partners is currently generating about 0.03 per unit of risk. If you would invest 1,738 in Artisan Global Equity on September 3, 2024 and sell it today you would earn a total of 464.00 from holding Artisan Global Equity or generate 26.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Global Equity vs. Legg Mason Partners
Performance |
| Timeline |
| Artisan Global Equity |
| Legg Mason Partners |
Artisan Global and Legg Mason Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Global and Legg Mason
The main advantage of trading using opposite Artisan Global and Legg Mason positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Global 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.| Artisan Global vs. Qs Moderate Growth | Artisan Global vs. T Rowe Price | Artisan Global vs. Hood River New | Artisan Global vs. Legg Mason Partners |
| Legg Mason vs. Hennessy Nerstone Mid | Legg Mason vs. Fpa Queens Road | Legg Mason vs. American Century Etf | Legg Mason vs. Columbia 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |