Correlation Between Blackstone and Legg Mason
Can any of the company-specific risk be diversified away by investing in both Blackstone 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 Blackstone and Legg Mason into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Legg Mason, you can compare the effects of market volatilities on Blackstone 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 Blackstone with a short position of Legg Mason. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Legg Mason.
Diversification Opportunities for Blackstone and Legg Mason
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Blackstone and Legg is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Legg Mason in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Legg Mason and Blackstone 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 Blackstone Group 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 has no effect on the direction of Blackstone i.e., Blackstone and Legg Mason go up and down completely randomly.
Pair Corralation between Blackstone and Legg Mason
If you would invest (100.00) in Legg Mason on February 6, 2024 and sell it today you would earn a total of 100.00 from holding Legg Mason or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Blackstone Group vs. Legg Mason
Performance |
Timeline |
Blackstone Group |
Legg Mason |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Blackstone and Legg Mason Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Blackstone and Legg Mason
The main advantage of trading using opposite Blackstone and Legg Mason positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone 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.The idea behind Blackstone Group and Legg Mason 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.Legg Mason vs. DataDot Technology Limited | Legg Mason vs. Pinterest | Legg Mason vs. Radcom | Legg Mason vs. Stratasys |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |