Correlation Between Legg Mason and Fidelity Asset
Can any of the company-specific risk be diversified away by investing in both Legg Mason and Fidelity Asset 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 Fidelity Asset 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 Fidelity Asset Manager, you can compare the effects of market volatilities on Legg Mason and Fidelity Asset 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 Fidelity Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legg Mason and Fidelity Asset.
Diversification Opportunities for Legg Mason and Fidelity Asset
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Legg and Fidelity is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Legg Mason Partners and Fidelity Asset Manager in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Asset Manager 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 Fidelity Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Asset Manager has no effect on the direction of Legg Mason i.e., Legg Mason and Fidelity Asset go up and down completely randomly.
Pair Corralation between Legg Mason and Fidelity Asset
If you would invest 1,362 in Fidelity Asset Manager on September 12, 2024 and sell it today you would earn a total of 11.00 from holding Fidelity Asset Manager or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Legg Mason Partners vs. Fidelity Asset Manager
Performance |
| Timeline |
| Legg Mason Partners |
| Fidelity Asset Manager |
Legg Mason and Fidelity Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Legg Mason and Fidelity Asset
The main advantage of trading using opposite Legg Mason and Fidelity Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legg Mason position performs unexpectedly, Fidelity Asset 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 Fidelity Asset will offset losses from the drop in Fidelity Asset's long position.| Legg Mason vs. Locorr Market Trend | Legg Mason vs. Ab All Market | Legg Mason vs. Sp Midcap Index | Legg Mason vs. Ep Emerging Markets |
| Fidelity Asset vs. Franklin Growth Opportunities | Fidelity Asset vs. Qs Moderate Growth | Fidelity Asset vs. Qs Defensive Growth | Fidelity Asset vs. Eip Growth And |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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