Correlation Between Multisector Bond and Legg Mason
Can any of the company-specific risk be diversified away by investing in both Multisector Bond and Legg Mason 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 Multisector Bond and Legg Mason into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multisector Bond Sma and Legg Mason Partners, you can compare the effects of market volatilities on Multisector Bond and Legg Mason 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 Multisector Bond with a short position of Legg Mason. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multisector Bond and Legg Mason.
Diversification Opportunities for Multisector Bond and Legg Mason
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Multisector and Legg is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Multisector Bond Sma and Legg Mason Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Legg Mason Partners and Multisector Bond 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 Multisector Bond Sma are associated (or correlated) with Legg Mason. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Legg Mason Partners has no effect on the direction of Multisector Bond i.e., Multisector Bond and Legg Mason go up and down completely randomly.
Pair Corralation between Multisector Bond and Legg Mason
If you would invest 1,365 in Multisector Bond Sma on September 12, 2024 and sell it today you would earn a total of 11.00 from holding Multisector Bond Sma 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 |
Multisector Bond Sma vs. Legg Mason Partners
Performance |
| Timeline |
| Multisector Bond Sma |
| Legg Mason Partners |
Multisector Bond and Legg Mason Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multisector Bond and Legg Mason
The main advantage of trading using opposite Multisector Bond and Legg Mason positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multisector Bond position performs unexpectedly, Legg Mason 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 Legg Mason will offset losses from the drop in Legg Mason's long position.| Multisector Bond vs. SCOR PK | Multisector Bond vs. Morningstar Unconstrained Allocation | Multisector Bond vs. Thrivent High Yield | Multisector Bond vs. Via Renewables |
| Legg Mason vs. Dreyfus Natural Resources | Legg Mason vs. Goehring Rozencwajg Resources | Legg Mason vs. Thrivent Natural Resources | Legg Mason vs. Tortoise Energy Independence |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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