Correlation Between Legg Mason and Mfs Research
Can any of the company-specific risk be diversified away by investing in both Legg Mason and Mfs Research 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 Mfs Research 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 Mfs Research International, you can compare the effects of market volatilities on Legg Mason and Mfs Research 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 Mfs Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legg Mason and Mfs Research.
Diversification Opportunities for Legg Mason and Mfs Research
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Legg and Mfs is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Legg Mason Partners and Mfs Research International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Research Interna 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 Mfs Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Research Interna has no effect on the direction of Legg Mason i.e., Legg Mason and Mfs Research go up and down completely randomly.
Pair Corralation between Legg Mason and Mfs Research
If you would invest 92.00 in Legg Mason Partners on September 12, 2024 and sell it today you would earn a total of 8.00 from holding Legg Mason Partners or generate 8.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Legg Mason Partners vs. Mfs Research International
Performance |
| Timeline |
| Legg Mason Partners |
| Mfs Research Interna |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Legg Mason and Mfs Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Legg Mason and Mfs Research
The main advantage of trading using opposite Legg Mason and Mfs Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legg Mason position performs unexpectedly, Mfs Research 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 Mfs Research will offset losses from the drop in Mfs Research's long position.| Legg Mason vs. Dreyfus Natural Resources | Legg Mason vs. Goehring Rozencwajg Resources | Legg Mason vs. Thrivent Natural Resources | Legg Mason vs. Tortoise Energy Independence |
| Mfs Research vs. Easterly Snow Longshort | Mfs Research vs. Prudential Short Duration | Mfs Research vs. Barings Active Short | Mfs Research vs. Blackrock Short Term Inflat Protected |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |