Correlation Between Legg Mason and Carlyle
Can any of the company-specific risk be diversified away by investing in both Legg Mason and Carlyle 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 Carlyle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Legg Mason and Carlyle Group, you can compare the effects of market volatilities on Legg Mason and Carlyle 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 Carlyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legg Mason and Carlyle.
Diversification Opportunities for Legg Mason and Carlyle
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Legg and Carlyle is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Legg Mason and Carlyle Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlyle Group 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 Carlyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlyle Group has no effect on the direction of Legg Mason i.e., Legg Mason and Carlyle go up and down completely randomly.
Pair Corralation between Legg Mason and Carlyle
If you would invest 3,418 in Carlyle Group on January 20, 2024 and sell it today you would earn a total of 990.00 from holding Carlyle Group or generate 28.96% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Legg Mason vs. Carlyle Group
Performance |
Timeline |
Legg Mason |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Carlyle Group |
Legg Mason and Carlyle Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Legg Mason and Carlyle
The main advantage of trading using opposite Legg Mason and Carlyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legg Mason position performs unexpectedly, Carlyle 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 Carlyle will offset losses from the drop in Carlyle's long position.Legg Mason vs. Definitive Healthcare Corp | Legg Mason vs. Jutal Offshore Oil | Legg Mason vs. Grow Solutions Holdings | Legg Mason vs. Tower Semiconductor |
Carlyle vs. Apollo Global Management | Carlyle vs. Blackstone Group | Carlyle vs. Brookfield Asset Management | Carlyle vs. Ares Management LP |
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 Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |