Correlation Between Legg Mason and Baron Intl
Can any of the company-specific risk be diversified away by investing in both Legg Mason and Baron Intl 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 Baron Intl 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 Baron Intl Growth, you can compare the effects of market volatilities on Legg Mason and Baron Intl 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 Baron Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legg Mason and Baron Intl.
Diversification Opportunities for Legg Mason and Baron Intl
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Legg and Baron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Legg Mason Partners and Baron Intl Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Intl Growth 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 Baron Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Intl Growth has no effect on the direction of Legg Mason i.e., Legg Mason and Baron Intl go up and down completely randomly.
Pair Corralation between Legg Mason and Baron Intl
If you would invest 2,679 in Baron Intl Growth on November 3, 2024 and sell it today you would earn a total of 93.00 from holding Baron Intl Growth or generate 3.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Legg Mason Partners vs. Baron Intl Growth
Performance |
| Timeline |
| Legg Mason Partners |
| Baron Intl Growth |
Legg Mason and Baron Intl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Legg Mason and Baron Intl
The main advantage of trading using opposite Legg Mason and Baron Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legg Mason position performs unexpectedly, Baron Intl 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 Baron Intl will offset losses from the drop in Baron Intl's long position.| Legg Mason vs. Blackrock Moderate Prepared | Legg Mason vs. College Retirement Equities | Legg Mason vs. Voya Retirement Servative | Legg Mason vs. Tiaa Cref Lifecycle Retirement |
| Baron Intl vs. Lgm Risk Managed | Baron Intl vs. Artisan High Income | Baron Intl vs. Pace High Yield | Baron Intl vs. Needham Aggressive 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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