Correlation Between Leggmason Partners and Multi Asset
Can any of the company-specific risk be diversified away by investing in both Leggmason Partners and Multi Asset 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 Multi Asset 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 Multi Asset Growth Strategy, you can compare the effects of market volatilities on Leggmason Partners and Multi Asset 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 Multi Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leggmason Partners and Multi Asset.
Diversification Opportunities for Leggmason Partners and Multi Asset
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Leggmason and Multi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Leggmason Partners Institution and Multi Asset Growth Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Asset Growth 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 Multi Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Asset Growth has no effect on the direction of Leggmason Partners i.e., Leggmason Partners and Multi Asset go up and down completely randomly.
Pair Corralation between Leggmason Partners and Multi Asset
Assuming the 90 days horizon Leggmason Partners is expected to generate 18.58 times less return on investment than Multi Asset. In addition to that, Leggmason Partners is 1.46 times more volatile than Multi Asset Growth Strategy. It trades about 0.0 of its total potential returns per unit of risk. Multi Asset Growth Strategy is currently generating about 0.1 per unit of volatility. If you would invest 855.00 in Multi Asset Growth Strategy on September 14, 2024 and sell it today you would earn a total of 224.00 from holding Multi Asset Growth Strategy or generate 26.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.8% |
| Values | Daily Returns |
Leggmason Partners Institution vs. Multi Asset Growth Strategy
Performance |
| Timeline |
| Leggmason Partners |
| Multi Asset Growth |
Leggmason Partners and Multi Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leggmason Partners and Multi Asset
The main advantage of trading using opposite Leggmason Partners and Multi Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leggmason Partners position performs unexpectedly, Multi Asset 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 Multi Asset will offset losses from the drop in Multi Asset's long position.| Leggmason Partners vs. Locorr Market Trend | Leggmason Partners vs. Pnc Emerging Markets | Leggmason Partners vs. Sp Midcap Index | Leggmason Partners vs. Investec Emerging Markets |
| Multi Asset vs. Scharf Global Opportunity | Multi Asset vs. Iaadx | Multi Asset vs. Leggmason Partners Institutional | Multi Asset vs. Balanced Fund Investor |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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