Correlation Between Brandywineglobal and Ladenburg Income

Can any of the company-specific risk be diversified away by investing in both Brandywineglobal and Ladenburg Income 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 Brandywineglobal and Ladenburg Income into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Brandywineglobal Corporate and Ladenburg Income Growth, you can compare the effects of market volatilities on Brandywineglobal and Ladenburg Income 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 Brandywineglobal with a short position of Ladenburg Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brandywineglobal and Ladenburg Income.

Diversification Opportunities for Brandywineglobal and Ladenburg Income

0.72

Correlation Coefficient

Brandywineglobal  Ladenburg Income

Poor diversification

The 3 months correlation between Brandywineglobal and Ladenburg is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Brandywineglobal Corporate and Ladenburg Income Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladenburg Income Growth and Brandywineglobal 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 Brandywineglobal Corporate are associated (or correlated) with Ladenburg Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladenburg Income Growth has no effect on the direction of Brandywineglobal i.e., Brandywineglobal and Ladenburg Income go up and down completely randomly.

Pair Corralation between Brandywineglobal and Ladenburg Income

Assuming the 90 days horizon Brandywineglobal Corporate is expected to generate 0.56 times more return on investment than Ladenburg Income. However, Brandywineglobal Corporate is 1.8 times less risky than Ladenburg Income. It trades about 0.3 of its potential returns per unit of risk. Ladenburg Income Growth is currently generating about 0.15 per unit of risk. If you would invest  1,059  in Brandywineglobal Corporate on September 17, 2024 and sell it today you would earn a total of  12.00  from holding Brandywineglobal Corporate or generate 1.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Brandywineglobal Corporate  vs.  Ladenburg Income Growth

Brandywineglobal C

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Brandywineglobal Corporate are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Brandywineglobal is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Ladenburg Income Growth

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ladenburg Income Growth are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Ladenburg Income is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Brandywineglobal and Ladenburg Income

The main advantage of trading using opposite Brandywineglobal and Ladenburg Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brandywineglobal position performs unexpectedly, Ladenburg Income 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 Ladenburg Income will offset losses from the drop in Ladenburg Income's long position.

The idea behind Brandywineglobal Corporate and Ladenburg Income Growth pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.