Correlation Between Legg Mason and Westcore Flexible
Can any of the company-specific risk be diversified away by investing in both Legg Mason and Westcore Flexible 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 Flexible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Legg Mason Bw and Westcore Flexible Income, you can compare the effects of market volatilities on Legg Mason and Westcore Flexible 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 Flexible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legg Mason and Westcore Flexible.
Diversification Opportunities for Legg Mason and Westcore Flexible
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Legg and Westcore is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Legg Mason Bw and Westcore Flexible Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westcore Flexible Income 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 Bw are associated (or correlated) with Westcore Flexible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westcore Flexible Income has no effect on the direction of Legg Mason i.e., Legg Mason and Westcore Flexible go up and down completely randomly.
Pair Corralation between Legg Mason and Westcore Flexible
Assuming the 90 days horizon Legg Mason Bw is expected to generate 3.1 times more return on investment than Westcore Flexible. However, Legg Mason is 3.1 times more volatile than Westcore Flexible Income. It trades about 0.11 of its potential returns per unit of risk. Westcore Flexible Income is currently generating about 0.15 per unit of risk. If you would invest 1,729 in Legg Mason Bw on September 12, 2024 and sell it today you would earn a total of 579.00 from holding Legg Mason Bw or generate 33.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Legg Mason Bw vs. Westcore Flexible Income
Performance |
| Timeline |
| Legg Mason Bw |
| Westcore Flexible Income |
Legg Mason and Westcore Flexible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Legg Mason and Westcore Flexible
The main advantage of trading using opposite Legg Mason and Westcore Flexible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legg Mason position performs unexpectedly, Westcore Flexible 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 Flexible will offset losses from the drop in Westcore Flexible's long position.| Legg Mason vs. Simt Multi Asset Inflation | Legg Mason vs. Loomis Sayles Inflation | Legg Mason vs. Guggenheim Managed Futures | Legg Mason vs. Ab Bond Inflation |
| Westcore Flexible vs. Siit High Yield | Westcore Flexible vs. T Rowe Price | Westcore Flexible vs. Artisan High Income | Westcore Flexible vs. Pace High Yield |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |