Correlation Between Legg Mason and Intech Us
Can any of the company-specific risk be diversified away by investing in both Legg Mason and Intech Us 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 Intech Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Legg Mason Bw and Intech Managed Volatility, you can compare the effects of market volatilities on Legg Mason and Intech Us 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 Intech Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legg Mason and Intech Us.
Diversification Opportunities for Legg Mason and Intech Us
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Legg and Intech is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Legg Mason Bw and Intech Managed Volatility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intech Managed Volatility 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 Bw are associated (or correlated) with Intech Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intech Managed Volatility has no effect on the direction of Legg Mason i.e., Legg Mason and Intech Us go up and down completely randomly.
Pair Corralation between Legg Mason and Intech Us
Assuming the 90 days horizon Legg Mason Bw is expected to generate 0.27 times more return on investment than Intech Us. However, Legg Mason Bw is 3.67 times less risky than Intech Us. It trades about 0.21 of its potential returns per unit of risk. Intech Managed Volatility is currently generating about -0.06 per unit of risk. If you would invest 1,066 in Legg Mason Bw on December 28, 2024 and sell it today you would earn a total of 35.00 from holding Legg Mason Bw or generate 3.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Legg Mason Bw vs. Intech Managed Volatility
Performance |
Timeline |
Legg Mason Bw |
Intech Managed Volatility |
Legg Mason and Intech Us Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Legg Mason and Intech Us
The main advantage of trading using opposite Legg Mason and Intech Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legg Mason position performs unexpectedly, Intech Us 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 Intech Us will offset losses from the drop in Intech Us' long position.Legg Mason vs. Delaware Limited Term Diversified | Legg Mason vs. Massmutual Premier Diversified | Legg Mason vs. Harbor Diversified International | Legg Mason vs. Jhancock Diversified Macro |
Intech Us vs. Classic Value Fund | Intech Us vs. Legg Mason Bw | Intech Us vs. Strategic Income Opportunities | Intech Us vs. Us Global Leaders |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Transaction History View history of all your transactions and understand their impact on performance | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |