Correlation Between Legg Mason and AllianceBernstein
Can any of the company-specific risk be diversified away by investing in both Legg Mason and AllianceBernstein 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 AllianceBernstein into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Legg Mason and AllianceBernstein Holding LP, you can compare the effects of market volatilities on Legg Mason and AllianceBernstein 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 AllianceBernstein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legg Mason and AllianceBernstein.
Diversification Opportunities for Legg Mason and AllianceBernstein
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Legg and AllianceBernstein is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Legg Mason and AllianceBernstein Holding LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AllianceBernstein 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 are associated (or correlated) with AllianceBernstein. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AllianceBernstein has no effect on the direction of Legg Mason i.e., Legg Mason and AllianceBernstein go up and down completely randomly.
Pair Corralation between Legg Mason and AllianceBernstein
If you would invest 3,375 in AllianceBernstein Holding LP on December 29, 2023 and sell it today you would earn a total of 100.00 from holding AllianceBernstein Holding LP or generate 2.96% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Legg Mason vs. AllianceBernstein Holding LP
Performance |
Timeline |
Legg Mason |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
AllianceBernstein |
Legg Mason and AllianceBernstein Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Legg Mason and AllianceBernstein
The main advantage of trading using opposite Legg Mason and AllianceBernstein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legg Mason position performs unexpectedly, AllianceBernstein 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 AllianceBernstein will offset losses from the drop in AllianceBernstein's long position.Legg Mason vs. Kulicke And Soffa | Legg Mason vs. Vishay Intertechnology | Legg Mason vs. Cirrus Logic | Legg Mason vs. Transphorm Technology |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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