Correlation Between North Square and Legg Mason
Can any of the company-specific risk be diversified away by investing in both North Square 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 North Square and Legg Mason into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between North Square Investments and Legg Mason Partners, you can compare the effects of market volatilities on North Square 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 North Square with a short position of Legg Mason. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Square and Legg Mason.
Diversification Opportunities for North Square and Legg Mason
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between North and Legg is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding North Square Investments 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 North Square 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 North Square Investments 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 North Square i.e., North Square and Legg Mason go up and down completely randomly.
Pair Corralation between North Square and Legg Mason
If you would invest 1,153 in North Square Investments on September 4, 2024 and sell it today you would earn a total of 0.00 from holding North Square Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
North Square Investments vs. Legg Mason Partners
Performance |
| Timeline |
| North Square Investments |
| Legg Mason Partners |
North Square and Legg Mason Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Square and Legg Mason
The main advantage of trading using opposite North Square and Legg Mason positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Square 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.| North Square vs. Legg Mason Partners | North Square vs. Kinetics Market Opportunities | North Square vs. Massmutual Select Diversified | North Square vs. Ep Emerging Markets |
| Legg Mason vs. Vanguard Total Stock | Legg Mason vs. Vanguard 500 Index | Legg Mason vs. Vanguard Total Stock | Legg Mason vs. Vanguard Total Stock |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |