Correlation Between Chase Growth and Leggmason Partners
Can any of the company-specific risk be diversified away by investing in both Chase Growth and Leggmason Partners 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 Chase Growth and Leggmason Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chase Growth Fund and Leggmason Partners Institutional, you can compare the effects of market volatilities on Chase Growth and Leggmason Partners 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 Chase Growth with a short position of Leggmason Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Leggmason Partners.
Diversification Opportunities for Chase Growth and Leggmason Partners
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chase and Leggmason is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and Leggmason Partners Institution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leggmason Partners and Chase Growth 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 Chase Growth Fund are associated (or correlated) with Leggmason Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leggmason Partners has no effect on the direction of Chase Growth i.e., Chase Growth and Leggmason Partners go up and down completely randomly.
Pair Corralation between Chase Growth and Leggmason Partners
If you would invest 1,765 in Chase Growth Fund on September 12, 2024 and sell it today you would earn a total of 3.00 from holding Chase Growth Fund or generate 0.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chase Growth Fund vs. Leggmason Partners Institution
Performance |
| Timeline |
| Chase Growth |
| Leggmason Partners |
Chase Growth and Leggmason Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase Growth and Leggmason Partners
The main advantage of trading using opposite Chase Growth and Leggmason Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth position performs unexpectedly, Leggmason Partners 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 Leggmason Partners will offset losses from the drop in Leggmason Partners' long position.| Chase Growth vs. The Chesapeake Growth | Chase Growth vs. Aston Montag Caldwell | Chase Growth vs. The Jensen Portfolio | Chase Growth vs. Cambiar Opportunity Fund |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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