Correlation Between Legg Mason and Barings Emerging
Can any of the company-specific risk be diversified away by investing in both Legg Mason and Barings Emerging 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 Barings Emerging 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 Barings Emerging Markets, you can compare the effects of market volatilities on Legg Mason and Barings Emerging 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 Barings Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legg Mason and Barings Emerging.
Diversification Opportunities for Legg Mason and Barings Emerging
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Legg and Barings is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Legg Mason Partners and Barings Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Emerging Markets 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 Barings Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Emerging Markets has no effect on the direction of Legg Mason i.e., Legg Mason and Barings Emerging go up and down completely randomly.
Pair Corralation between Legg Mason and Barings Emerging
If you would invest 741.00 in Barings Emerging Markets on October 24, 2024 and sell it today you would earn a total of 6.00 from holding Barings Emerging Markets or generate 0.81% 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. Barings Emerging Markets
Performance |
| Timeline |
| Legg Mason Partners |
| Barings Emerging Markets |
Legg Mason and Barings Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Legg Mason and Barings Emerging
The main advantage of trading using opposite Legg Mason and Barings Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legg Mason position performs unexpectedly, Barings Emerging 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 Barings Emerging will offset losses from the drop in Barings Emerging's long position.| Legg Mason vs. Center St Mlp | Legg Mason vs. Rbc Microcap Value | Legg Mason vs. Abr 7525 Volatility | Legg Mason vs. Aam Select Income |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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