Correlation Between Friendable and Legg Mason
Can any of the company-specific risk be diversified away by investing in both Friendable 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 Friendable and Legg Mason into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Friendable and Legg Mason Bw, you can compare the effects of market volatilities on Friendable 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 Friendable with a short position of Legg Mason. Check out your portfolio center. Please also check ongoing floating volatility patterns of Friendable and Legg Mason.
Diversification Opportunities for Friendable and Legg Mason
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Friendable and Legg is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Friendable and LEGG MASON BW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Legg Mason Bw and Friendable 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 Friendable 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 Bw has no effect on the direction of Friendable i.e., Friendable and Legg Mason go up and down completely randomly.
Pair Corralation between Friendable and Legg Mason
If you would invest 857.00 in Legg Mason Bw on December 29, 2023 and sell it today you would earn a total of 5.00 from holding Legg Mason Bw or generate 0.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Friendable vs. LEGG MASON BW
Performance |
Timeline |
Friendable |
Legg Mason Bw |
Friendable and Legg Mason Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Friendable and Legg Mason
The main advantage of trading using opposite Friendable and Legg Mason positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Friendable 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.Friendable vs. CNFinance Holdings | Friendable vs. Telkom Indonesia Tbk | Friendable vs. Telkom Indonesia Tbk | Friendable vs. Ecopetrol SA ADR |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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