Correlation Between Clearbridge International and Clearbridge Aggressive
Can any of the company-specific risk be diversified away by investing in both Clearbridge International and Clearbridge Aggressive 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 International and Clearbridge Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clearbridge International Growth and Clearbridge Aggressive Growth, you can compare the effects of market volatilities on Clearbridge International and Clearbridge Aggressive 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 International with a short position of Clearbridge Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearbridge International and Clearbridge Aggressive.
Diversification Opportunities for Clearbridge International and Clearbridge Aggressive
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Clearbridge and Clearbridge is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Clearbridge International Grow and Clearbridge Aggressive Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Aggressive and Clearbridge International 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 International Growth are associated (or correlated) with Clearbridge Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Aggressive has no effect on the direction of Clearbridge International i.e., Clearbridge International and Clearbridge Aggressive go up and down completely randomly.
Pair Corralation between Clearbridge International and Clearbridge Aggressive
Assuming the 90 days horizon Clearbridge International Growth is expected to under-perform the Clearbridge Aggressive. But the mutual fund apears to be less risky and, when comparing its historical volatility, Clearbridge International Growth is 1.74 times less risky than Clearbridge Aggressive. The mutual fund trades about -0.19 of its potential returns per unit of risk. The Clearbridge Aggressive Growth is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 14,767 in Clearbridge Aggressive Growth on August 25, 2024 and sell it today you would earn a total of 613.00 from holding Clearbridge Aggressive Growth or generate 4.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clearbridge International Grow vs. Clearbridge Aggressive Growth
Performance |
| Timeline |
| Clearbridge International |
| Clearbridge Aggressive |
Clearbridge International and Clearbridge Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearbridge International and Clearbridge Aggressive
The main advantage of trading using opposite Clearbridge International and Clearbridge Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearbridge International position performs unexpectedly, Clearbridge Aggressive 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 Aggressive will offset losses from the drop in Clearbridge Aggressive's long position.| Clearbridge International vs. Value Fund Investor | Clearbridge International vs. Ultra Fund Investor | Clearbridge International vs. Growth Fund Investor | Clearbridge International vs. Select Fund Investor |
| Clearbridge Aggressive vs. Nuveen Large Cap | Clearbridge Aggressive vs. Nuveen Large Cap | Clearbridge Aggressive vs. HUMANA INC | Clearbridge Aggressive vs. SCOR PK |
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 Correlations module to find global opportunities by holding instruments from different markets.
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