Correlation Between Arrow Financial and Legg Mason
Can any of the company-specific risk be diversified away by investing in both Arrow Financial 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 Arrow Financial and Legg Mason into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arrow Financial and Legg Mason, you can compare the effects of market volatilities on Arrow Financial 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 Arrow Financial with a short position of Legg Mason. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arrow Financial and Legg Mason.
Diversification Opportunities for Arrow Financial and Legg Mason
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Arrow and Legg is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Arrow Financial and Legg Mason in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Legg Mason and Arrow Financial 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 Arrow Financial 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 has no effect on the direction of Arrow Financial i.e., Arrow Financial and Legg Mason go up and down completely randomly.
Pair Corralation between Arrow Financial and Legg Mason
If you would invest 2,637 in Arrow Financial on September 4, 2024 and sell it today you would earn a total of 609.00 from holding Arrow Financial or generate 23.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Arrow Financial vs. Legg Mason
Performance |
| Timeline |
| Arrow Financial |
| Legg Mason |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Arrow Financial and Legg Mason Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arrow Financial and Legg Mason
The main advantage of trading using opposite Arrow Financial and Legg Mason positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arrow Financial 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.| Arrow Financial vs. Heritage Commerce Corp | Arrow Financial vs. Westamerica Bancorporation | Arrow Financial vs. Heritage Financial | Arrow Financial vs. National Bankshares |
| Legg Mason vs. Yuexiu Transport Infrastructure | Legg Mason vs. Old Dominion Freight | Legg Mason vs. JD Sports Fashion | Legg Mason vs. Mannatech Incorporated |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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