Correlation Between Leggmason Partners and Catalystsmh High
Can any of the company-specific risk be diversified away by investing in both Leggmason Partners and Catalystsmh High 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 Catalystsmh High 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 Catalystsmh High Income, you can compare the effects of market volatilities on Leggmason Partners and Catalystsmh High 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 Catalystsmh High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leggmason Partners and Catalystsmh High.
Diversification Opportunities for Leggmason Partners and Catalystsmh High
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Leggmason and Catalystsmh is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Leggmason Partners Institution and Catalystsmh High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystsmh High Income 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 Catalystsmh High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystsmh High Income has no effect on the direction of Leggmason Partners i.e., Leggmason Partners and Catalystsmh High go up and down completely randomly.
Pair Corralation between Leggmason Partners and Catalystsmh High
If you would invest 369.00 in Catalystsmh High Income on November 3, 2024 and sell it today you would earn a total of 4.00 from holding Catalystsmh High Income or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leggmason Partners Institution vs. Catalystsmh High Income
Performance |
| Timeline |
| Leggmason Partners |
| Catalystsmh High Income |
Leggmason Partners and Catalystsmh High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leggmason Partners and Catalystsmh High
The main advantage of trading using opposite Leggmason Partners and Catalystsmh High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leggmason Partners position performs unexpectedly, Catalystsmh High 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 Catalystsmh High will offset losses from the drop in Catalystsmh High's long position.| Leggmason Partners vs. Tiaa Cref High Yield | Leggmason Partners vs. Buffalo High Yield | Leggmason Partners vs. Prudential High Yield | Leggmason Partners vs. Multi Manager High Yield |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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