Correlation Between Clearbridge Select and Aig Government
Can any of the company-specific risk be diversified away by investing in both Clearbridge Select and Aig Government 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 Clearbridge Select and Aig Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clearbridge Select Fund and Aig Government Money, you can compare the effects of market volatilities on Clearbridge Select and Aig Government 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 Clearbridge Select with a short position of Aig Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearbridge Select and Aig Government.
Diversification Opportunities for Clearbridge Select and Aig Government
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Clearbridge and Aig is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Clearbridge Select Fund and Aig Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aig Government Money and Clearbridge Select 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 Clearbridge Select Fund are associated (or correlated) with Aig Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aig Government Money has no effect on the direction of Clearbridge Select i.e., Clearbridge Select and Aig Government go up and down completely randomly.
Pair Corralation between Clearbridge Select and Aig Government
Assuming the 90 days horizon Clearbridge Select Fund is expected to generate 6.36 times more return on investment than Aig Government. However, Clearbridge Select is 6.36 times more volatile than Aig Government Money. It trades about 0.04 of its potential returns per unit of risk. Aig Government Money is currently generating about 0.04 per unit of risk. If you would invest 5,464 in Clearbridge Select Fund on October 23, 2024 and sell it today you would earn a total of 36.00 from holding Clearbridge Select Fund or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clearbridge Select Fund vs. Aig Government Money
Performance |
| Timeline |
| Clearbridge Select |
| Aig Government Money |
Clearbridge Select and Aig Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearbridge Select and Aig Government
The main advantage of trading using opposite Clearbridge Select and Aig Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearbridge Select position performs unexpectedly, Aig Government 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 Aig Government will offset losses from the drop in Aig Government's long position.| Clearbridge Select vs. Aig Government Money | Clearbridge Select vs. Schwab Government Money | Clearbridge Select vs. Rbc Funds Trust | Clearbridge Select vs. Hsbc Treasury Money |
| Aig Government vs. Fidelity Advisor Energy | Aig Government vs. Blackrock All Cap Energy | Aig Government vs. Oil Gas Ultrasector | Aig Government vs. Thrivent Natural Resources |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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