Correlation Between Siit High and Legg Mason
Can any of the company-specific risk be diversified away by investing in both Siit High 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 Siit High and Legg Mason into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit High Yield and Legg Mason Partners, you can compare the effects of market volatilities on Siit High 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 Siit High with a short position of Legg Mason. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Legg Mason.
Diversification Opportunities for Siit High and Legg Mason
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Siit and Legg is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield 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 Siit High 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 Siit High Yield 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 Siit High i.e., Siit High and Legg Mason go up and down completely randomly.
Pair Corralation between Siit High and Legg Mason
Assuming the 90 days horizon Siit High Yield is expected to generate 0.37 times more return on investment than Legg Mason. However, Siit High Yield is 2.69 times less risky than Legg Mason. It trades about 0.16 of its potential returns per unit of risk. Legg Mason Partners is currently generating about -0.08 per unit of risk. If you would invest 705.00 in Siit High Yield on October 23, 2024 and sell it today you would earn a total of 11.00 from holding Siit High Yield or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit High Yield vs. Legg Mason Partners
Performance |
| Timeline |
| Siit High Yield |
| Legg Mason Partners |
Siit High and Legg Mason Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and Legg Mason
The main advantage of trading using opposite Siit High and Legg Mason positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High 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.| Siit High vs. Barings Global Floating | Siit High vs. Qs Global Equity | Siit High vs. Us Global Investors | Siit High vs. Mirova Global Green |
| Legg Mason vs. Siit High Yield | Legg Mason vs. Guggenheim High Yield | Legg Mason vs. Pace High Yield | Legg Mason vs. Buffalo High Yield |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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