Legg Mason Correlations

GOBAX Fund  USD 8.68  0.01  0.12%   
The current 90-days correlation between Legg Mason Bw and Goldman Sachs High is 0.16 (i.e., Average diversification). The correlation of Legg Mason is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Legg Mason Correlation With Market

Modest diversification

The correlation between Legg Mason Bw and DJI is 0.21 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Legg Mason Bw and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Legg Mason Bw. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as signals in nation.

Moving together with Legg Mutual Fund

  0.98FGBRX Templeton Global BondPairCorr
  0.98FBNRX Templeton Global BondPairCorr
  0.96RCWBX Capital World BondPairCorr
  0.88CCWFX Capital World BondPairCorr
  0.89CCWCX Capital World BondPairCorr
  0.89RCWEX Capital World BondPairCorr
  0.89CCWEX Capital World BondPairCorr
  0.89RCWCX Capital World BondPairCorr
  0.88RCWGX Capital World BondPairCorr
  0.88RCWFX Capital World BondPairCorr
  0.81BRUFX Bruce Fund BrucePairCorr
  0.68KF Korea ClosedPairCorr
  0.65JSEAX Jpmorgan InternationalPairCorr
  0.84IIBAX Voya Intermediate BondPairCorr
  0.68MCTAX Massmutual RetiresmartPairCorr
  0.63MCD McDonaldsPairCorr
  0.68PG Procter GamblePairCorr
  0.73VZ Verizon Communications Aggressive PushPairCorr

Moving against Legg Mutual Fund

  0.69SPGSX State Street PremierPairCorr
  0.53AXP American ExpressPairCorr
  0.47BAC Bank of America Aggressive PushPairCorr
  0.39PFE Pfizer IncPairCorr
  0.37CAT CaterpillarPairCorr
  0.33DIS Walt DisneyPairCorr
  0.31MSFT MicrosoftPairCorr

Related Correlations Analysis

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Risk-Adjusted Indicators

There is a big difference between Legg Mutual Fund performing well and Legg Mason Mutual Fund doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Legg Mason's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.