Correlation Between Carlyle and Legg Mason
Can any of the company-specific risk be diversified away by investing in both Carlyle 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 Carlyle and Legg Mason into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Group and Legg Mason, you can compare the effects of market volatilities on Carlyle 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 Carlyle with a short position of Legg Mason. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle and Legg Mason.
Diversification Opportunities for Carlyle and Legg Mason
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Carlyle and Legg is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Group and Legg Mason in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Legg Mason and Carlyle 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 Carlyle 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 Carlyle i.e., Carlyle and Legg Mason go up and down completely randomly.
Pair Corralation between Carlyle and Legg Mason
If you would invest 2,808 in Carlyle Group on December 30, 2023 and sell it today you would earn a total of 1,883 from holding Carlyle Group or generate 67.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Carlyle Group vs. Legg Mason
Performance |
Timeline |
Carlyle Group |
Legg Mason |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Carlyle and Legg Mason Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Carlyle and Legg Mason
The main advantage of trading using opposite Carlyle and Legg Mason positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle 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.Carlyle vs. Postal Realty Trust | Carlyle vs. LGI Homes | Carlyle vs. Haier Smart Home | Carlyle vs. Saia Inc |
Legg Mason vs. Paysafe | Legg Mason vs. Academy Sports OutdoorsInc | Legg Mason vs. ServiceNow | Legg Mason vs. Sun Country Airlines |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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