Correlation Between Legg Mason and Natixis Sustainable
Can any of the company-specific risk be diversified away by investing in both Legg Mason and Natixis Sustainable 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 Natixis Sustainable 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 Natixis Sustainable Future, you can compare the effects of market volatilities on Legg Mason and Natixis Sustainable 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 Natixis Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legg Mason and Natixis Sustainable.
Diversification Opportunities for Legg Mason and Natixis Sustainable
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Legg and Natixis is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Legg Mason Partners and Natixis Sustainable Future in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Sustainable 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 Natixis Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis Sustainable has no effect on the direction of Legg Mason i.e., Legg Mason and Natixis Sustainable go up and down completely randomly.
Pair Corralation between Legg Mason and Natixis Sustainable
Assuming the 90 days trading horizon Legg Mason Partners is expected to generate 2.8 times more return on investment than Natixis Sustainable. However, Legg Mason is 2.8 times more volatile than Natixis Sustainable Future. It trades about 0.36 of its potential returns per unit of risk. Natixis Sustainable Future is currently generating about 0.37 per unit of risk. If you would invest 2,570 in Legg Mason Partners on September 1, 2024 and sell it today you would earn a total of 313.00 from holding Legg Mason Partners or generate 12.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Legg Mason Partners vs. Natixis Sustainable Future
Performance |
| Timeline |
| Legg Mason Partners |
| Natixis Sustainable |
Legg Mason and Natixis Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Legg Mason and Natixis Sustainable
The main advantage of trading using opposite Legg Mason and Natixis Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legg Mason position performs unexpectedly, Natixis Sustainable 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 Natixis Sustainable will offset losses from the drop in Natixis Sustainable's long position.| Legg Mason vs. Transamerica Emerging Markets | Legg Mason vs. Angel Oak Multi Strategy | Legg Mason vs. Shelton Emerging Markets | Legg Mason vs. Eagle Mlp Strategy |
| Natixis Sustainable vs. Small Midcap Dividend Income | Natixis Sustainable vs. Legg Mason Partners | Natixis Sustainable vs. Us Small Cap | Natixis Sustainable vs. Fisher Small Cap |
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.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |