Correlation Between Templeton Emerging and Clearbridge Mid
Can any of the company-specific risk be diversified away by investing in both Templeton Emerging and Clearbridge Mid 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 Emerging and Clearbridge Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Templeton Emerging Markets and Clearbridge Mid Cap, you can compare the effects of market volatilities on Templeton Emerging and Clearbridge Mid 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 Emerging with a short position of Clearbridge Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Emerging and Clearbridge Mid.
Diversification Opportunities for Templeton Emerging and Clearbridge Mid
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Templeton and Clearbridge is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Emerging Markets and Clearbridge Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Mid Cap and Templeton Emerging 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 Emerging Markets are associated (or correlated) with Clearbridge Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Mid Cap has no effect on the direction of Templeton Emerging i.e., Templeton Emerging and Clearbridge Mid go up and down completely randomly.
Pair Corralation between Templeton Emerging and Clearbridge Mid
Assuming the 90 days horizon Templeton Emerging Markets is expected to generate 0.64 times more return on investment than Clearbridge Mid. However, Templeton Emerging Markets is 1.56 times less risky than Clearbridge Mid. It trades about -0.1 of its potential returns per unit of risk. Clearbridge Mid Cap is currently generating about -0.27 per unit of risk. If you would invest 1,359 in Templeton Emerging Markets on December 1, 2024 and sell it today you would lose (17.00) from holding Templeton Emerging Markets or give up 1.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Templeton Emerging Markets vs. Clearbridge Mid Cap
Performance |
| Timeline |
| Templeton Emerging |
| Clearbridge Mid Cap |
Templeton Emerging and Clearbridge Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Emerging and Clearbridge Mid
The main advantage of trading using opposite Templeton Emerging and Clearbridge Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Emerging position performs unexpectedly, Clearbridge Mid 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 Mid will offset losses from the drop in Clearbridge Mid's long position.| Templeton Emerging vs. Flkypx | Templeton Emerging vs. Iaadx | Templeton Emerging vs. Rational Dividend Capture | Templeton Emerging vs. Arrow Managed Futures |
| Clearbridge Mid vs. Ab Bond Inflation | Clearbridge Mid vs. Short Duration Inflation | Clearbridge Mid vs. Ab Bond Inflation | Clearbridge Mid vs. The Hartford Inflation |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |