Correlation Between Templeton Global and Clearbridge Value
Can any of the company-specific risk be diversified away by investing in both Templeton Global and Clearbridge Value 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 Templeton Global and Clearbridge Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Templeton Global Bond and Clearbridge Value Trust, you can compare the effects of market volatilities on Templeton Global and Clearbridge Value 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 Templeton Global with a short position of Clearbridge Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Global and Clearbridge Value.
Diversification Opportunities for Templeton Global and Clearbridge Value
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Templeton and Clearbridge is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Global Bond and Clearbridge Value Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Value Trust and Templeton Global 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 Templeton Global Bond are associated (or correlated) with Clearbridge Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Value Trust has no effect on the direction of Templeton Global i.e., Templeton Global and Clearbridge Value go up and down completely randomly.
Pair Corralation between Templeton Global and Clearbridge Value
Assuming the 90 days horizon Templeton Global Bond is expected to under-perform the Clearbridge Value. But the mutual fund apears to be less risky and, when comparing its historical volatility, Templeton Global Bond is 1.42 times less risky than Clearbridge Value. The mutual fund trades about -0.1 of its potential returns per unit of risk. The Clearbridge Value Trust is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 13,693 in Clearbridge Value Trust on August 29, 2024 and sell it today you would earn a total of 655.00 from holding Clearbridge Value Trust or generate 4.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Templeton Global Bond vs. Clearbridge Value Trust
Performance |
| Timeline |
| Templeton Global Bond |
| Clearbridge Value Trust |
Templeton Global and Clearbridge Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Global and Clearbridge Value
The main advantage of trading using opposite Templeton Global and Clearbridge Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Global position performs unexpectedly, Clearbridge Value 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 Value will offset losses from the drop in Clearbridge Value's long position.| Templeton Global vs. Capital World Bond | Templeton Global vs. Capital World Bond | Templeton Global vs. HUMANA INC | Templeton Global vs. Aquagold International |
| Clearbridge Value vs. Blackrock Government Bond | Clearbridge Value vs. Aig Government Money | Clearbridge Value vs. Dunham Porategovernment Bond | Clearbridge Value vs. Us Government Securities |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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