Correlation Between Legg Mason and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both Legg Mason and Calamos Growth 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 Calamos Growth 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 Calamos Growth Fund, you can compare the effects of market volatilities on Legg Mason and Calamos Growth 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 Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legg Mason and Calamos Growth.
Diversification Opportunities for Legg Mason and Calamos Growth
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Legg and Calamos is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Legg Mason Partners and Calamos Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth 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 Calamos Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Growth has no effect on the direction of Legg Mason i.e., Legg Mason and Calamos Growth go up and down completely randomly.
Pair Corralation between Legg Mason and Calamos Growth
If you would invest 100.00 in Legg Mason Partners on January 13, 2025 and sell it today you would earn a total of 0.00 from holding Legg Mason Partners or generate 0.0% 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. Calamos Growth Fund
Performance |
| Timeline |
| Legg Mason Partners |
| Calamos Growth |
Legg Mason and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Legg Mason and Calamos Growth
The main advantage of trading using opposite Legg Mason and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legg Mason position performs unexpectedly, Calamos Growth 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 Calamos Growth will offset losses from the drop in Calamos Growth's long position.| Legg Mason vs. Qs Defensive Growth | Legg Mason vs. Ab International Growth | Legg Mason vs. Growth Allocation Fund | Legg Mason vs. Eagle Growth Income |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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