Correlation Between Legg Mason and At Income
Can any of the company-specific risk be diversified away by investing in both Legg Mason and At Income 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 At Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Legg Mason Partners and At Income Opportunities, you can compare the effects of market volatilities on Legg Mason and At Income 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 At Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legg Mason and At Income.
Diversification Opportunities for Legg Mason and At Income
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Legg and AWIIX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Legg Mason Partners and At Income Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on At Income Opportunities 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 Partners are associated (or correlated) with At Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of At Income Opportunities has no effect on the direction of Legg Mason i.e., Legg Mason and At Income go up and down completely randomly.
Pair Corralation between Legg Mason and At Income
If you would invest 1,566 in At Income Opportunities on November 3, 2024 and sell it today you would earn a total of 35.00 from holding At Income Opportunities or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Legg Mason Partners vs. At Income Opportunities
Performance |
| Timeline |
| Legg Mason Partners |
| At Income Opportunities |
Legg Mason and At Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Legg Mason and At Income
The main advantage of trading using opposite Legg Mason and At Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legg Mason position performs unexpectedly, At Income 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 At Income will offset losses from the drop in At Income's long position.| Legg Mason vs. Vanguard Total Stock | Legg Mason vs. Vanguard 500 Index | Legg Mason vs. Vanguard Total Stock | Legg Mason vs. Vanguard Total Stock |
| At Income vs. Voya Target Retirement | At Income vs. Sierra E Retirement | At Income vs. Dimensional Retirement Income | At Income vs. Columbia Moderate Growth |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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