Correlation Between Legg Mason and Ab Concentrated
Can any of the company-specific risk be diversified away by investing in both Legg Mason and Ab Concentrated 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 Legg Mason and Ab Concentrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Legg Mason Partners and Ab Centrated International, you can compare the effects of market volatilities on Legg Mason and Ab Concentrated 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 Legg Mason with a short position of Ab Concentrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legg Mason and Ab Concentrated.
Diversification Opportunities for Legg Mason and Ab Concentrated
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Legg and CIAGX is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Legg Mason Partners and Ab Centrated International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Centrated Interna and Legg Mason 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 Legg Mason Partners are associated (or correlated) with Ab Concentrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Centrated Interna has no effect on the direction of Legg Mason i.e., Legg Mason and Ab Concentrated go up and down completely randomly.
Pair Corralation between Legg Mason and Ab Concentrated
If you would invest 100.00 in Legg Mason Partners on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Legg Mason Partners or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Legg Mason Partners vs. Ab Centrated International
Performance |
| Timeline |
| Legg Mason Partners |
| Ab Centrated Interna |
Legg Mason and Ab Concentrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Legg Mason and Ab Concentrated
The main advantage of trading using opposite Legg Mason and Ab Concentrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legg Mason position performs unexpectedly, Ab Concentrated 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 Ab Concentrated will offset losses from the drop in Ab Concentrated's long position.| Legg Mason vs. Hennessy Technology Fund | Legg Mason vs. Dreyfus Technology Growth | Legg Mason vs. Allianzgi Technology Fund | Legg Mason vs. Columbia Global Technology |
| Ab Concentrated vs. Champlain Small | Ab Concentrated vs. Ab Small Cap | Ab Concentrated vs. Vanguard Small Cap Growth | Ab Concentrated vs. Jpmorgan 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |