Correlation Between Legg Mason and Oakhurst Fixed
Can any of the company-specific risk be diversified away by investing in both Legg Mason and Oakhurst Fixed 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 Oakhurst Fixed 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 Oakhurst Fixed Income, you can compare the effects of market volatilities on Legg Mason and Oakhurst Fixed 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 Oakhurst Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legg Mason and Oakhurst Fixed.
Diversification Opportunities for Legg Mason and Oakhurst Fixed
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Legg and Oakhurst is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Legg Mason Partners and Oakhurst Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakhurst Fixed Income 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 Oakhurst Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakhurst Fixed Income has no effect on the direction of Legg Mason i.e., Legg Mason and Oakhurst Fixed go up and down completely randomly.
Pair Corralation between Legg Mason and Oakhurst Fixed
Assuming the 90 days trading horizon Legg Mason Partners is expected to generate 2.21 times more return on investment than Oakhurst Fixed. However, Legg Mason is 2.21 times more volatile than Oakhurst Fixed Income. It trades about 0.19 of its potential returns per unit of risk. Oakhurst Fixed Income is currently generating about -0.06 per unit of risk. If you would invest 2,280 in Legg Mason Partners on September 4, 2024 and sell it today you would earn a total of 174.00 from holding Legg Mason Partners or generate 7.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Legg Mason Partners vs. Oakhurst Fixed Income
Performance |
| Timeline |
| Legg Mason Partners |
| Oakhurst Fixed Income |
Legg Mason and Oakhurst Fixed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Legg Mason and Oakhurst Fixed
The main advantage of trading using opposite Legg Mason and Oakhurst Fixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legg Mason position performs unexpectedly, Oakhurst Fixed 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 Oakhurst Fixed will offset losses from the drop in Oakhurst Fixed's long position.| Legg Mason vs. Vanguard Total Stock | Legg Mason vs. Vanguard 500 Index | Legg Mason vs. Vanguard Total Stock | Legg Mason vs. Vanguard Total Stock |
| Oakhurst Fixed vs. Templeton Emerging Markets | Oakhurst Fixed vs. Angel Oak Multi Strategy | Oakhurst Fixed vs. Legg Mason Partners | Oakhurst Fixed vs. T Rowe Price |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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