Correlation Between Templeton Global and Clearbridge Small
Can any of the company-specific risk be diversified away by investing in both Templeton Global and Clearbridge Small 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 Small 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 Small Cap, you can compare the effects of market volatilities on Templeton Global and Clearbridge Small 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 Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Global and Clearbridge Small.
Diversification Opportunities for Templeton Global and Clearbridge Small
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Templeton and Clearbridge is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Global Bond and Clearbridge Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Small Cap 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 Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Small Cap has no effect on the direction of Templeton Global i.e., Templeton Global and Clearbridge Small go up and down completely randomly.
Pair Corralation between Templeton Global and Clearbridge Small
Assuming the 90 days horizon Templeton Global Bond is expected to under-perform the Clearbridge Small. But the mutual fund apears to be less risky and, when comparing its historical volatility, Templeton Global Bond is 2.24 times less risky than Clearbridge Small. The mutual fund trades about -0.05 of its potential returns per unit of risk. The Clearbridge Small Cap is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 3,598 in Clearbridge Small Cap on September 1, 2024 and sell it today you would earn a total of 428.00 from holding Clearbridge Small Cap or generate 11.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Templeton Global Bond vs. Clearbridge Small Cap
Performance |
| Timeline |
| Templeton Global Bond |
| Clearbridge Small Cap |
Templeton Global and Clearbridge Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Global and Clearbridge Small
The main advantage of trading using opposite Templeton Global and Clearbridge Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Global position performs unexpectedly, Clearbridge Small 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 Small will offset losses from the drop in Clearbridge Small's long position.| Templeton Global vs. Alphacentric Lifesci Healthcare | Templeton Global vs. Baillie Gifford Health | Templeton Global vs. The Gabelli Healthcare | Templeton Global vs. Allianzgi Health Sciences |
| Clearbridge Small vs. Pimco Funds | Clearbridge Small vs. Ashmore Emerging Markets | Clearbridge Small vs. John Hancock Money | Clearbridge Small vs. Transamerica Funds |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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