Correlation Between AOT Growth and ClearBridge Large
Can any of the company-specific risk be diversified away by investing in both AOT Growth and ClearBridge Large 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 AOT Growth and ClearBridge Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AOT Growth and and ClearBridge Large Cap, you can compare the effects of market volatilities on AOT Growth and ClearBridge Large 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 AOT Growth with a short position of ClearBridge Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of AOT Growth and ClearBridge Large.
Diversification Opportunities for AOT Growth and ClearBridge Large
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AOT and ClearBridge is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding AOT Growth and and ClearBridge Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ClearBridge Large Cap and AOT Growth 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 AOT Growth and are associated (or correlated) with ClearBridge Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ClearBridge Large Cap has no effect on the direction of AOT Growth i.e., AOT Growth and ClearBridge Large go up and down completely randomly.
Pair Corralation between AOT Growth and ClearBridge Large
Given the investment horizon of 90 days AOT Growth and is expected to generate 1.48 times more return on investment than ClearBridge Large. However, AOT Growth is 1.48 times more volatile than ClearBridge Large Cap. It trades about 0.13 of its potential returns per unit of risk. ClearBridge Large Cap is currently generating about 0.12 per unit of risk. If you would invest 3,708 in AOT Growth and on September 1, 2024 and sell it today you would earn a total of 930.00 from holding AOT Growth and or generate 25.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
AOT Growth and vs. ClearBridge Large Cap
Performance |
| Timeline |
| AOT Growth |
| ClearBridge Large Cap |
AOT Growth and ClearBridge Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AOT Growth and ClearBridge Large
The main advantage of trading using opposite AOT Growth and ClearBridge Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AOT Growth position performs unexpectedly, ClearBridge Large 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 ClearBridge Large will offset losses from the drop in ClearBridge Large's long position.| AOT Growth vs. Nexalin Technology | AOT Growth vs. Kilroy Realty Corp | AOT Growth vs. Highwoods Properties | AOT Growth vs. Karat Packaging |
| ClearBridge Large vs. Vanguard Growth Index | ClearBridge Large vs. iShares Russell 1000 | ClearBridge Large vs. iShares SP 500 | ClearBridge Large vs. iShares Core SP |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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