Correlation Between Legg Mason and Rbc Impact
Can any of the company-specific risk be diversified away by investing in both Legg Mason and Rbc Impact 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 Rbc Impact 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 Rbc Impact Bond, you can compare the effects of market volatilities on Legg Mason and Rbc Impact 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 Rbc Impact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legg Mason and Rbc Impact.
Diversification Opportunities for Legg Mason and Rbc Impact
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Legg and Rbc is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Legg Mason Global and Rbc Impact Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rbc Impact Bond 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 Rbc Impact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rbc Impact Bond has no effect on the direction of Legg Mason i.e., Legg Mason and Rbc Impact go up and down completely randomly.
Pair Corralation between Legg Mason and Rbc Impact
Assuming the 90 days horizon Legg Mason Global is expected to generate 0.93 times more return on investment than Rbc Impact. However, Legg Mason Global is 1.08 times less risky than Rbc Impact. It trades about 0.06 of its potential returns per unit of risk. Rbc Impact Bond is currently generating about 0.05 per unit of risk. If you would invest 890.00 in Legg Mason Global on September 12, 2024 and sell it today you would earn a total of 70.00 from holding Legg Mason Global or generate 7.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Legg Mason Global vs. Rbc Impact Bond
Performance |
| Timeline |
| Legg Mason Global |
| Rbc Impact Bond |
Legg Mason and Rbc Impact Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Legg Mason and Rbc Impact
The main advantage of trading using opposite Legg Mason and Rbc Impact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legg Mason position performs unexpectedly, Rbc Impact 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 Rbc Impact will offset losses from the drop in Rbc Impact's long position.| Legg Mason vs. Ab Global Real | Legg Mason vs. Kinetics Global Fund | Legg Mason vs. Mirova Global Green | Legg Mason vs. Scharf Global Opportunity |
| Rbc Impact vs. Blackrock Inflation Protected | Rbc Impact vs. Ab Bond Inflation | Rbc Impact vs. Atac Inflation Rotation | Rbc Impact vs. American Funds Inflation |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |