Correlation Between Legg Mason and Calvert Unconstrained
Can any of the company-specific risk be diversified away by investing in both Legg Mason and Calvert Unconstrained 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 Calvert Unconstrained into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Legg Mason Partners and Calvert Unconstrained Bond, you can compare the effects of market volatilities on Legg Mason and Calvert Unconstrained 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 Calvert Unconstrained. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legg Mason and Calvert Unconstrained.
Diversification Opportunities for Legg Mason and Calvert Unconstrained
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Legg and Calvert is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Legg Mason Partners and Calvert Unconstrained Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Unconstrained 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 Partners are associated (or correlated) with Calvert Unconstrained. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Unconstrained has no effect on the direction of Legg Mason i.e., Legg Mason and Calvert Unconstrained go up and down completely randomly.
Pair Corralation between Legg Mason and Calvert Unconstrained
Assuming the 90 days trading horizon Legg Mason Partners is expected to generate 1.1 times more return on investment than Calvert Unconstrained. However, Legg Mason is 1.1 times more volatile than Calvert Unconstrained Bond. It trades about 0.42 of its potential returns per unit of risk. Calvert Unconstrained Bond is currently generating about 0.28 per unit of risk. If you would invest 603.00 in Legg Mason Partners on April 15, 2025 and sell it today you would earn a total of 31.00 from holding Legg Mason Partners or generate 5.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Legg Mason Partners vs. Calvert Unconstrained Bond
Performance |
| Timeline |
| Legg Mason Partners |
| Calvert Unconstrained |
Legg Mason and Calvert Unconstrained Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Legg Mason and Calvert Unconstrained
The main advantage of trading using opposite Legg Mason and Calvert Unconstrained positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legg Mason position performs unexpectedly, Calvert Unconstrained 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 Calvert Unconstrained will offset losses from the drop in Calvert Unconstrained's long position.| Legg Mason vs. Great West Inflation Protected Securities | Legg Mason vs. Cref Inflation Linked Bond | Legg Mason vs. Atac Inflation Rotation | Legg Mason vs. Ab Bond Inflation |
| Calvert Unconstrained vs. Ab Bond Inflation | Calvert Unconstrained vs. Intermediate Term Tax Free Bond | Calvert Unconstrained vs. Artisan High Income | Calvert Unconstrained vs. Morningstar Defensive Bond |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |