Correlation Between Legg Mason and Alger Spectra
Can any of the company-specific risk be diversified away by investing in both Legg Mason and Alger Spectra 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 Alger Spectra 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 Alger Spectra Fund, you can compare the effects of market volatilities on Legg Mason and Alger Spectra 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 Alger Spectra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legg Mason and Alger Spectra.
Diversification Opportunities for Legg Mason and Alger Spectra
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Legg and Alger is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Legg Mason Partners and Alger Spectra Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Spectra 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 Alger Spectra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger Spectra has no effect on the direction of Legg Mason i.e., Legg Mason and Alger Spectra go up and down completely randomly.
Pair Corralation between Legg Mason and Alger Spectra
If you would invest 2,670 in Alger Spectra Fund on September 12, 2024 and sell it today you would earn a total of 468.00 from holding Alger Spectra Fund or generate 17.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Legg Mason Partners vs. Alger Spectra Fund
Performance |
Timeline |
Legg Mason Partners |
Alger Spectra |
Legg Mason and Alger Spectra Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Legg Mason and Alger Spectra
The main advantage of trading using opposite Legg Mason and Alger Spectra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legg Mason position performs unexpectedly, Alger Spectra 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 Alger Spectra will offset losses from the drop in Alger Spectra's long position.Legg Mason vs. Goldman Sachs Real | Legg Mason vs. Deutsche Real Estate | Legg Mason vs. Amg Managers Centersquare | Legg Mason vs. Pender Real Estate |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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