Correlation Between Pimco Stocksplus and Legg Mason
Can any of the company-specific risk be diversified away by investing in both Pimco Stocksplus 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 Pimco Stocksplus and Legg Mason into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Stocksplus Ar and Legg Mason Global, you can compare the effects of market volatilities on Pimco Stocksplus 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 Pimco Stocksplus with a short position of Legg Mason. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Stocksplus and Legg Mason.
Diversification Opportunities for Pimco Stocksplus and Legg Mason
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pimco and Legg is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Stocksplus Ar and Legg Mason Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Legg Mason Global and Pimco Stocksplus 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 Pimco Stocksplus Ar 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 Global has no effect on the direction of Pimco Stocksplus i.e., Pimco Stocksplus and Legg Mason go up and down completely randomly.
Pair Corralation between Pimco Stocksplus and Legg Mason
Assuming the 90 days horizon Pimco Stocksplus Ar is expected to under-perform the Legg Mason. In addition to that, Pimco Stocksplus is 2.65 times more volatile than Legg Mason Global. It trades about -0.04 of its total potential returns per unit of risk. Legg Mason Global is currently generating about 0.25 per unit of volatility. If you would invest 949.00 in Legg Mason Global on September 13, 2024 and sell it today you would earn a total of 10.00 from holding Legg Mason Global or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Pimco Stocksplus Ar vs. Legg Mason Global
Performance |
| Timeline |
| Pimco Stocksplus |
| Legg Mason Global |
Pimco Stocksplus and Legg Mason Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Stocksplus and Legg Mason
The main advantage of trading using opposite Pimco Stocksplus and Legg Mason positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Stocksplus 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.| Pimco Stocksplus vs. Pimco Rae Worldwide | Pimco Stocksplus vs. Pimco Rae Worldwide | Pimco Stocksplus vs. Pimco Rae Worldwide | Pimco Stocksplus vs. Pimco Rae Worldwide |
| Legg Mason vs. Multimedia Portfolio Multimedia | Legg Mason vs. Rbc Global Equity | Legg Mason vs. Gmo Global Equity | Legg Mason vs. Ms Global Fixed |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |