Correlation Between Legg Mason and Hewitt Money
Can any of the company-specific risk be diversified away by investing in both Legg Mason and Hewitt Money 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 Hewitt Money 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 Hewitt Money Market, you can compare the effects of market volatilities on Legg Mason and Hewitt Money 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 Hewitt Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legg Mason and Hewitt Money.
Diversification Opportunities for Legg Mason and Hewitt Money
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Legg and Hewitt is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Legg Mason Global and Hewitt Money Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hewitt Money Market 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 Hewitt Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hewitt Money Market has no effect on the direction of Legg Mason i.e., Legg Mason and Hewitt Money go up and down completely randomly.
Pair Corralation between Legg Mason and Hewitt Money
If you would invest 913.00 in Legg Mason Global on October 22, 2024 and sell it today you would earn a total of 5.00 from holding Legg Mason Global or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Legg Mason Global vs. Hewitt Money Market
Performance |
| Timeline |
| Legg Mason Global |
| Hewitt Money Market |
Legg Mason and Hewitt Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Legg Mason and Hewitt Money
The main advantage of trading using opposite Legg Mason and Hewitt Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legg Mason position performs unexpectedly, Hewitt Money 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 Hewitt Money will offset losses from the drop in Hewitt Money's long position.| Legg Mason vs. Growth Fund Of | Legg Mason vs. Morningstar Global Income | Legg Mason vs. Dreyfusstandish Global Fixed | Legg Mason vs. Transamerica Asset Allocation |
| Hewitt Money vs. Alpine Ultra Short | Hewitt Money vs. Old Westbury Municipal | Hewitt Money vs. Franklin Adjustable Government | Hewitt Money vs. Lord Abbett Intermediate |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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