Correlation Between Clearbridge Dividend and Clearbridge Appreciation
Can any of the company-specific risk be diversified away by investing in both Clearbridge Dividend and Clearbridge Appreciation 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 Dividend and Clearbridge Appreciation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clearbridge Dividend Strategy and Clearbridge Appreciation Fund, you can compare the effects of market volatilities on Clearbridge Dividend and Clearbridge Appreciation 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 Dividend with a short position of Clearbridge Appreciation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearbridge Dividend and Clearbridge Appreciation.
Diversification Opportunities for Clearbridge Dividend and Clearbridge Appreciation
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Clearbridge and Clearbridge is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Clearbridge Dividend Strategy and Clearbridge Appreciation Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Appreciation and Clearbridge Dividend 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 Dividend Strategy are associated (or correlated) with Clearbridge Appreciation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Appreciation has no effect on the direction of Clearbridge Dividend i.e., Clearbridge Dividend and Clearbridge Appreciation go up and down completely randomly.
Pair Corralation between Clearbridge Dividend and Clearbridge Appreciation
Assuming the 90 days horizon Clearbridge Dividend is expected to generate 1.11 times less return on investment than Clearbridge Appreciation. But when comparing it to its historical volatility, Clearbridge Dividend Strategy is 1.09 times less risky than Clearbridge Appreciation. It trades about 0.17 of its potential returns per unit of risk. Clearbridge Appreciation Fund is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 3,709 in Clearbridge Appreciation Fund on August 26, 2024 and sell it today you would earn a total of 120.00 from holding Clearbridge Appreciation Fund or generate 3.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clearbridge Dividend Strategy vs. Clearbridge Appreciation Fund
Performance |
| Timeline |
| Clearbridge Dividend |
| Clearbridge Appreciation |
Clearbridge Dividend and Clearbridge Appreciation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearbridge Dividend and Clearbridge Appreciation
The main advantage of trading using opposite Clearbridge Dividend and Clearbridge Appreciation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearbridge Dividend position performs unexpectedly, Clearbridge Appreciation 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 Appreciation will offset losses from the drop in Clearbridge Appreciation's long position.| Clearbridge Dividend vs. Clearbridge Appreciation Fund | Clearbridge Dividend vs. Clearbridge Aggressive Growth | Clearbridge Dividend vs. Clearbridge Mid Cap | Clearbridge Dividend vs. Clearbridge Large Cap |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |