Correlation Between Global X and ClearBridge Dividend
Can any of the company-specific risk be diversified away by investing in both Global X and ClearBridge Dividend 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 Global X and ClearBridge Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Funds and ClearBridge Dividend Strategy, you can compare the effects of market volatilities on Global X and ClearBridge Dividend 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 Global X with a short position of ClearBridge Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and ClearBridge Dividend.
Diversification Opportunities for Global X and ClearBridge Dividend
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and ClearBridge is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Global X Funds and ClearBridge Dividend Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ClearBridge Dividend and Global X 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 Global X Funds are associated (or correlated) with ClearBridge Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ClearBridge Dividend has no effect on the direction of Global X i.e., Global X and ClearBridge Dividend go up and down completely randomly.
Pair Corralation between Global X and ClearBridge Dividend
Considering the 90-day investment horizon Global X Funds is expected to generate 1.48 times more return on investment than ClearBridge Dividend. However, Global X is 1.48 times more volatile than ClearBridge Dividend Strategy. It trades about 0.05 of its potential returns per unit of risk. ClearBridge Dividend Strategy is currently generating about -0.1 per unit of risk. If you would invest 2,704 in Global X Funds on September 12, 2024 and sell it today you would earn a total of 22.00 from holding Global X Funds or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Funds vs. ClearBridge Dividend Strategy
Performance |
| Timeline |
| Global X Funds |
| ClearBridge Dividend |
Global X and ClearBridge Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and ClearBridge Dividend
The main advantage of trading using opposite Global X and ClearBridge Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, ClearBridge Dividend 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 Dividend will offset losses from the drop in ClearBridge Dividend's long position.| Global X vs. Global X MSCI | Global X vs. Global X Alternative | Global X vs. iShares Emerging Markets | Global X vs. Global X SuperDividend |
| ClearBridge Dividend vs. ClearBridge Large Cap | ClearBridge Dividend vs. VictoryShares Dividend Accelerator | ClearBridge Dividend vs. VictoryShares Multi Factor Minimum |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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