Correlation Between Legg Mason and Westcore International
Can any of the company-specific risk be diversified away by investing in both Legg Mason and Westcore International 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 Westcore International 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 Westcore International Small Cap, you can compare the effects of market volatilities on Legg Mason and Westcore International 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 Westcore International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legg Mason and Westcore International.
Diversification Opportunities for Legg Mason and Westcore International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Legg and Westcore is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Legg Mason Partners and Westcore International Small C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westcore International 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 Westcore International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westcore International has no effect on the direction of Legg Mason i.e., Legg Mason and Westcore International go up and down completely randomly.
Pair Corralation between Legg Mason and Westcore International
If you would invest 1,567 in Westcore International Small Cap on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Westcore International Small Cap or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Legg Mason Partners vs. Westcore International Small C
Performance |
| Timeline |
| Legg Mason Partners |
| Westcore International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Legg Mason and Westcore International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Legg Mason and Westcore International
The main advantage of trading using opposite Legg Mason and Westcore International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legg Mason position performs unexpectedly, Westcore International 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 Westcore International will offset losses from the drop in Westcore International's long position.| Legg Mason vs. Goldman Sachs Real | Legg Mason vs. Deutsche Real Estate | Legg Mason vs. Amg Managers Centersquare | Legg Mason vs. Pender Real Estate |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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