Correlation Between Legg Mason and At Equity
Can any of the company-specific risk be diversified away by investing in both Legg Mason and At Equity 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 At Equity 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 At Equity Income, you can compare the effects of market volatilities on Legg Mason and At Equity 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 At Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legg Mason and At Equity.
Diversification Opportunities for Legg Mason and At Equity
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Legg and AWYIX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Legg Mason Partners and At Equity Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on At Equity 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 At Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of At Equity Income has no effect on the direction of Legg Mason i.e., Legg Mason and At Equity go up and down completely randomly.
Pair Corralation between Legg Mason and At Equity
If you would invest 6,491 in At Equity Income on September 13, 2024 and sell it today you would earn a total of 6.00 from holding At Equity Income or generate 0.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Legg Mason Partners vs. At Equity Income
Performance |
| Timeline |
| Legg Mason Partners |
| At Equity Income |
Legg Mason and At Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Legg Mason and At Equity
The main advantage of trading using opposite Legg Mason and At Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legg Mason position performs unexpectedly, At Equity 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 At Equity will offset losses from the drop in At Equity's long position.| Legg Mason vs. General Money Market | Legg Mason vs. Cref Money Market | Legg Mason vs. Franklin Government Money | Legg Mason vs. The Gabelli Money |
| At Equity vs. Invesco Disciplined Equity | At Equity vs. Cibc Atlas All | At Equity vs. At Income Opportunities | At Equity vs. At Mid 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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