Correlation Between Manning Napier and Legg Mason
Can any of the company-specific risk be diversified away by investing in both Manning Napier 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 Manning Napier and Legg Mason into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manning Napier and Legg Mason, you can compare the effects of market volatilities on Manning Napier 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 Manning Napier with a short position of Legg Mason. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manning Napier and Legg Mason.
Diversification Opportunities for Manning Napier and Legg Mason
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Manning and Legg is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Manning Napier and Legg Mason in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Legg Mason and Manning Napier 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 Manning Napier 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 Manning Napier i.e., Manning Napier and Legg Mason go up and down completely randomly.
Pair Corralation between Manning Napier and Legg Mason
If you would invest (100.00) in Legg Mason on January 25, 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 |
Manning Napier vs. Legg Mason
Performance |
| Timeline |
| Manning Napier |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Legg Mason |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Manning Napier and Legg Mason Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manning Napier and Legg Mason
The main advantage of trading using opposite Manning Napier and Legg Mason positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manning Napier 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.| Manning Napier vs. HydroGraph Clean Power | Manning Napier vs. MYR Group | Manning Napier vs. EMCOR Group | Manning Napier vs. Tyson Foods |
| Legg Mason vs. RLX Technology | Legg Mason vs. Hertz Global Holdings | Legg Mason vs. Japan Tobacco ADR | Legg Mason vs. Diageo PLC ADR |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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