Correlation Between Leggmason Partners and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Leggmason Partners and Angel Oak 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 Leggmason Partners and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leggmason Partners Institutional and Angel Oak Multi Strategy, you can compare the effects of market volatilities on Leggmason Partners and Angel Oak 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 Leggmason Partners with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leggmason Partners and Angel Oak.
Diversification Opportunities for Leggmason Partners and Angel Oak
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Leggmason and Angel is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Leggmason Partners Institution and Angel Oak Multi Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Multi and Leggmason Partners 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 Leggmason Partners Institutional are associated (or correlated) with Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Multi has no effect on the direction of Leggmason Partners i.e., Leggmason Partners and Angel Oak go up and down completely randomly.
Pair Corralation between Leggmason Partners and Angel Oak
If you would invest 855.00 in Angel Oak Multi Strategy on August 23, 2024 and sell it today you would earn a total of 0.00 from holding Angel Oak Multi Strategy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leggmason Partners Institution vs. Angel Oak Multi Strategy
Performance |
| Timeline |
| Leggmason Partners |
| Angel Oak Multi |
Leggmason Partners and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leggmason Partners and Angel Oak
The main advantage of trading using opposite Leggmason Partners and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leggmason Partners position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.| Leggmason Partners vs. Oppenheimer Gold Special | Leggmason Partners vs. Precious Metals And | Leggmason Partners vs. Franklin Gold Precious | Leggmason Partners vs. Invesco Gold Special |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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