Correlation Between Bruce Fund and Clearbridge Large
Can any of the company-specific risk be diversified away by investing in both Bruce Fund 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 Bruce Fund and Clearbridge Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bruce Fund Bruce and Clearbridge Large Cap, you can compare the effects of market volatilities on Bruce Fund 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 Bruce Fund with a short position of Clearbridge Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bruce Fund and Clearbridge Large.
Diversification Opportunities for Bruce Fund and Clearbridge Large
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bruce and Clearbridge is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Bruce Fund Bruce 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 Bruce Fund 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 Bruce Fund Bruce 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 Bruce Fund i.e., Bruce Fund and Clearbridge Large go up and down completely randomly.
Pair Corralation between Bruce Fund and Clearbridge Large
Assuming the 90 days horizon Bruce Fund is expected to generate 13.62 times less return on investment than Clearbridge Large. But when comparing it to its historical volatility, Bruce Fund Bruce is 1.65 times less risky than Clearbridge Large. It trades about 0.02 of its potential returns per unit of risk. Clearbridge Large Cap is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 7,747 in Clearbridge Large Cap on August 29, 2024 and sell it today you would earn a total of 263.00 from holding Clearbridge Large Cap or generate 3.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bruce Fund Bruce vs. Clearbridge Large Cap
Performance |
| Timeline |
| Bruce Fund Bruce |
| Clearbridge Large Cap |
Bruce Fund and Clearbridge Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bruce Fund and Clearbridge Large
The main advantage of trading using opposite Bruce Fund and Clearbridge Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bruce Fund 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.| Bruce Fund vs. Angel Oak Multi Strategy | Bruce Fund vs. Ep Emerging Markets | Bruce Fund vs. Federated Emerging Market | Bruce Fund vs. Rbc Emerging Markets |
| Clearbridge Large vs. Power Global Tactical | Clearbridge Large vs. Kinetics Global Fund | Clearbridge Large vs. Us Global Leaders | Clearbridge Large vs. Blue Current Global |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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