Correlation Between Legg Mason and Mainstay Cushing
Can any of the company-specific risk be diversified away by investing in both Legg Mason and Mainstay Cushing 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 Mainstay Cushing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Legg Mason Global and Mainstay Cushing Energy, you can compare the effects of market volatilities on Legg Mason and Mainstay Cushing 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 Mainstay Cushing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legg Mason and Mainstay Cushing.
Diversification Opportunities for Legg Mason and Mainstay Cushing
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Legg and Mainstay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Legg Mason Global and Mainstay Cushing Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Cushing Energy 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 Global are associated (or correlated) with Mainstay Cushing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Cushing Energy has no effect on the direction of Legg Mason i.e., Legg Mason and Mainstay Cushing go up and down completely randomly.
Pair Corralation between Legg Mason and Mainstay Cushing
If you would invest 932.00 in Legg Mason Global on September 3, 2024 and sell it today you would earn a total of 27.00 from holding Legg Mason Global or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Legg Mason Global vs. Mainstay Cushing Energy
Performance |
| Timeline |
| Legg Mason Global |
| Mainstay Cushing Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Legg Mason and Mainstay Cushing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Legg Mason and Mainstay Cushing
The main advantage of trading using opposite Legg Mason and Mainstay Cushing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legg Mason position performs unexpectedly, Mainstay Cushing 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 Mainstay Cushing will offset losses from the drop in Mainstay Cushing's long position.| Legg Mason vs. Dreyfusstandish Global Fixed | Legg Mason vs. Morningstar Global Income | Legg Mason vs. Franklin Mutual Global | Legg Mason vs. Ab Global Real |
| Mainstay Cushing vs. Qs Global Equity | Mainstay Cushing vs. Legg Mason Global | Mainstay Cushing vs. Scharf Global Opportunity | Mainstay Cushing vs. Siit Global Managed |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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