Correlation Between Legg Mason and North Square
Can any of the company-specific risk be diversified away by investing in both Legg Mason and North Square 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 North Square 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 North Square Investments, you can compare the effects of market volatilities on Legg Mason and North Square 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 North Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legg Mason and North Square.
Diversification Opportunities for Legg Mason and North Square
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Legg and North is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Legg Mason Partners and North Square Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Square Investments 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 North Square. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Square Investments has no effect on the direction of Legg Mason i.e., Legg Mason and North Square go up and down completely randomly.
Pair Corralation between Legg Mason and North Square
If you would invest 1,153 in North Square Investments on September 5, 2024 and sell it today you would earn a total of 3.00 from holding North Square Investments or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Legg Mason Partners vs. North Square Investments
Performance |
| Timeline |
| Legg Mason Partners |
| North Square Investments |
Legg Mason and North Square Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Legg Mason and North Square
The main advantage of trading using opposite Legg Mason and North Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legg Mason position performs unexpectedly, North Square 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 North Square will offset losses from the drop in North Square's long position.| Legg Mason vs. Transamerica Emerging Markets | Legg Mason vs. Shelton Emerging Markets | Legg Mason vs. Black Oak Emerging | Legg Mason vs. Rbc Emerging Markets |
| North Square vs. Global Gold Fund | North Square vs. International Investors Gold | North Square vs. Oppenheimer Gold Special | North Square vs. Europac Gold Fund |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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