Correlation Between Sp Midcap and Legg Mason
Can any of the company-specific risk be diversified away by investing in both Sp Midcap 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 Sp Midcap and Legg Mason into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sp Midcap Index and Legg Mason Partners, you can compare the effects of market volatilities on Sp Midcap 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 Sp Midcap with a short position of Legg Mason. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sp Midcap and Legg Mason.
Diversification Opportunities for Sp Midcap and Legg Mason
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SPMIX and Legg is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Sp Midcap Index 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 Sp Midcap 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 Sp Midcap Index 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 Sp Midcap i.e., Sp Midcap and Legg Mason go up and down completely randomly.
Pair Corralation between Sp Midcap and Legg Mason
If you would invest 2,796 in Sp Midcap Index on August 28, 2024 and sell it today you would earn a total of 225.00 from holding Sp Midcap Index or generate 8.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sp Midcap Index vs. Legg Mason Partners
Performance |
Timeline |
Sp Midcap Index |
Legg Mason Partners |
Sp Midcap and Legg Mason Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sp Midcap and Legg Mason
The main advantage of trading using opposite Sp Midcap and Legg Mason positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sp Midcap 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.Sp Midcap vs. Wisdomtree Siegel Moderate | Sp Midcap vs. Tiaa Cref Lifecycle Retirement | Sp Midcap vs. Saat Moderate Strategy | Sp Midcap vs. Pro Blend Moderate Term |
Legg Mason vs. Vanguard Total Stock | Legg Mason vs. Vanguard 500 Index | Legg Mason vs. Vanguard Total Stock | Legg Mason vs. Vanguard Total Stock |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
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 | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |