Correlation Between Clearbridge Aggressive and Templeton Global
Can any of the company-specific risk be diversified away by investing in both Clearbridge Aggressive and Templeton Global 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 Aggressive and Templeton Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clearbridge Aggressive Growth and Templeton Global Bond, you can compare the effects of market volatilities on Clearbridge Aggressive and Templeton Global 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 Aggressive with a short position of Templeton Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearbridge Aggressive and Templeton Global.
Diversification Opportunities for Clearbridge Aggressive and Templeton Global
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Clearbridge and Templeton is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Clearbridge Aggressive Growth and Templeton Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Global Bond and Clearbridge Aggressive 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 Aggressive Growth are associated (or correlated) with Templeton Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Global Bond has no effect on the direction of Clearbridge Aggressive i.e., Clearbridge Aggressive and Templeton Global go up and down completely randomly.
Pair Corralation between Clearbridge Aggressive and Templeton Global
Assuming the 90 days horizon Clearbridge Aggressive Growth is expected to generate 2.23 times more return on investment than Templeton Global. However, Clearbridge Aggressive is 2.23 times more volatile than Templeton Global Bond. It trades about 0.28 of its potential returns per unit of risk. Templeton Global Bond is currently generating about 0.38 per unit of risk. If you would invest 13,609 in Clearbridge Aggressive Growth on November 18, 2024 and sell it today you would earn a total of 833.00 from holding Clearbridge Aggressive Growth or generate 6.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clearbridge Aggressive Growth vs. Templeton Global Bond
Performance |
| Timeline |
| Clearbridge Aggressive |
| Templeton Global Bond |
Clearbridge Aggressive and Templeton Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearbridge Aggressive and Templeton Global
The main advantage of trading using opposite Clearbridge Aggressive and Templeton Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearbridge Aggressive position performs unexpectedly, Templeton Global 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 Templeton Global will offset losses from the drop in Templeton Global's long position.| Clearbridge Aggressive vs. Dreyfusstandish Global Fixed | Clearbridge Aggressive vs. Siit High Yield | Clearbridge Aggressive vs. Old Westbury Fixed | Clearbridge Aggressive vs. Rbc Ultra Short Fixed |
| Templeton Global vs. Angel Oak Multi Strategy | Templeton Global vs. Dodge Cox Emerging | Templeton Global vs. Rbc Emerging Markets | Templeton Global vs. Goldman Sachs Emerging |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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