Correlation Between Leggmason Partners and Global Concentrated
Can any of the company-specific risk be diversified away by investing in both Leggmason Partners and Global Concentrated 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 Global Concentrated 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 Global Centrated Portfolio, you can compare the effects of market volatilities on Leggmason Partners and Global Concentrated 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 Global Concentrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leggmason Partners and Global Concentrated.
Diversification Opportunities for Leggmason Partners and Global Concentrated
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Leggmason and Global is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Leggmason Partners Institution and Global Centrated Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Centrated Por 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 Global Concentrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Centrated Por has no effect on the direction of Leggmason Partners i.e., Leggmason Partners and Global Concentrated go up and down completely randomly.
Pair Corralation between Leggmason Partners and Global Concentrated
If you would invest 2,237 in Global Centrated Portfolio on September 3, 2024 and sell it today you would earn a total of 197.00 from holding Global Centrated Portfolio or generate 8.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leggmason Partners Institution vs. Global Centrated Portfolio
Performance |
| Timeline |
| Leggmason Partners |
| Global Centrated Por |
Leggmason Partners and Global Concentrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leggmason Partners and Global Concentrated
The main advantage of trading using opposite Leggmason Partners and Global Concentrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leggmason Partners position performs unexpectedly, Global Concentrated 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 Global Concentrated will offset losses from the drop in Global Concentrated's long position.| Leggmason Partners vs. Multisector Bond Sma | Leggmason Partners vs. Ms Global Fixed | Leggmason Partners vs. Gmo High Yield | Leggmason Partners vs. Ab Bond Inflation |
| Global Concentrated vs. Ab Value Fund | Global Concentrated vs. Aam Select Income | Global Concentrated vs. Leggmason Partners Institutional | Global Concentrated vs. Qs Large Cap |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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