Correlation Between Calvert Moderate and Legg Mason
Can any of the company-specific risk be diversified away by investing in both Calvert Moderate 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 Calvert Moderate and Legg Mason into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Moderate Allocation and Legg Mason Global, you can compare the effects of market volatilities on Calvert Moderate 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 Calvert Moderate with a short position of Legg Mason. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Moderate and Legg Mason.
Diversification Opportunities for Calvert Moderate and Legg Mason
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Calvert and Legg is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Moderate Allocation and Legg Mason Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Legg Mason Global and Calvert Moderate 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 Calvert Moderate Allocation 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 Global has no effect on the direction of Calvert Moderate i.e., Calvert Moderate and Legg Mason go up and down completely randomly.
Pair Corralation between Calvert Moderate and Legg Mason
Assuming the 90 days horizon Calvert Moderate is expected to generate 1.49 times less return on investment than Legg Mason. In addition to that, Calvert Moderate is 1.69 times more volatile than Legg Mason Global. It trades about 0.06 of its total potential returns per unit of risk. Legg Mason Global is currently generating about 0.16 per unit of volatility. If you would invest 953.00 in Legg Mason Global on September 12, 2024 and sell it today you would earn a total of 7.00 from holding Legg Mason Global or generate 0.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Moderate Allocation vs. Legg Mason Global
Performance |
| Timeline |
| Calvert Moderate All |
| Legg Mason Global |
Calvert Moderate and Legg Mason Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Moderate and Legg Mason
The main advantage of trading using opposite Calvert Moderate and Legg Mason positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Moderate 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.| Calvert Moderate vs. Legg Mason Global | Calvert Moderate vs. Barings Global Floating | Calvert Moderate vs. Jhancock Global Equity | Calvert Moderate vs. Mirova Global Green |
| Legg Mason vs. Ab Global Real | Legg Mason vs. Kinetics Global Fund | Legg Mason vs. Mirova Global Green | Legg Mason vs. Scharf Global Opportunity |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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