Clearbridge Small Correlations

LMOIX Fund  USD 37.97  0.02  0.05%   
The current 90-days correlation between Clearbridge Small Cap and Clearbridge Aggressive Growth is 0.92 (i.e., Almost no diversification). The correlation of Clearbridge Small is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Clearbridge Small Correlation With Market

Poor diversification

The correlation between Clearbridge Small Cap and DJI is 0.69 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Clearbridge Small Cap and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Clearbridge Small Cap. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product.

Moving together with Clearbridge Mutual Fund

  0.97SAGCX Clearbridge AggressivePairCorr
  0.98LGASX Clearbridge Small CapPairCorr
  0.94SAPCX Clearbridge AppreciationPairCorr
  0.92LGSCX Qs Small CapitalizationPairCorr
  0.7SBCLX Qs Defensive GrowthPairCorr
  0.97SBMLX Clearbridge Mid CapPairCorr
  0.94SBSDX Qs Sp 500PairCorr
  0.86SCBCX Qs Servative GrowthPairCorr
  0.79SCGCX Qs Moderate GrowthPairCorr

Moving against Clearbridge Mutual Fund

  0.53WABSX Western Asset IntermPairCorr
  0.52WATCX Western Asset IntermPairCorr
  0.52WATRX Western Asset IntermPairCorr
  0.51SSTLX Western Asset ShortPairCorr
  0.46WACSX Western Asset EPairCorr
  0.46WABRX Western Asset EPairCorr
  0.46WAPIX Western Asset EPairCorr
  0.45LGOCX Legg Mason BwPairCorr
  0.45WABCX Western Asset EPairCorr
  0.43WAPCX Western Asset EPairCorr
  0.42WACIX Western Asset EPairCorr
  0.42WAPRX Western Asset EPairCorr
  0.41WAASX Western Asset TotalPairCorr
  0.41WAPSX Western Asset EPairCorr
  0.41SBICX Clearbridge InternationalPairCorr
  0.41SBILX Western Asset PoratePairCorr
  0.41WARIX Western Asset TotalPairCorr
  0.35WAFRX Western Asset InflationPairCorr
  0.34LGFEX Qs International EquityPairCorr
  0.34WAFCX Western Asset InflationPairCorr
  0.34WAFSX Western Asset InflationPairCorr
  0.45LMBSX Western Asset MortgagePairCorr
  0.41WAUCX Western Asset TotalPairCorr
  0.41WAURX Western Asset TotalPairCorr
  0.41LIORX Clearbridge InternationalPairCorr
  0.39ARMLX Western Asset AdjustablePairCorr
  0.35WATPX Western Asset InflationPairCorr
  0.34LIESX Qs International EquityPairCorr
  0.31ARMGX Western Asset AdjustablePairCorr

Related Correlations Analysis

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
SAPCXSAGCX
LGASXSAGCX
LGSCXLGASX
LGOCXLGFEX
WACSXWAASX
WAASXLGFEX
  
High negative correlations   
LGSCXWAASX
WACSXLGSCX
LGSCXLGOCX
LGOCXLGASX
WACSXLGASX
LGSCXLGFEX

Risk-Adjusted Indicators

There is a big difference between Clearbridge Mutual Fund performing well and Clearbridge Small Mutual Fund doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Clearbridge Small's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.