Correlation Between International Investors and Clearbridge Mid

Can any of the company-specific risk be diversified away by investing in both International Investors 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 International Investors and Clearbridge Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between International Investors Gold and Clearbridge Mid Cap, you can compare the effects of market volatilities on International Investors 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 International Investors with a short position of Clearbridge Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Investors and Clearbridge Mid.

Diversification Opportunities for International Investors and Clearbridge Mid

-0.02

Correlation Coefficient

International Investors  Clearbridge Mid

Good diversification

The 3 months correlation between International and Clearbridge is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding International Investors Gold 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 International Investors 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 International Investors Gold 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 International Investors i.e., International Investors and Clearbridge Mid go up and down completely randomly.

Pair Corralation between International Investors and Clearbridge Mid

Assuming the 90 days horizon International Investors Gold is expected to generate 0.93 times more return on investment than Clearbridge Mid. However, International Investors Gold is 1.07 times less risky than Clearbridge Mid. It trades about 0.09 of its potential returns per unit of risk. Clearbridge Mid Cap is currently generating about -0.15 per unit of risk. If you would invest  1,114  in International Investors Gold on December 2, 2024 and sell it today you would earn a total of  104.00  from holding International Investors Gold or generate 9.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

International Investors Gold  vs.  Clearbridge Mid Cap

International Investors

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in International Investors Gold are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, International Investors may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Clearbridge Mid Cap

Risk-Adjusted Performance

Very Weak

Over the last 90 days Clearbridge Mid Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's essential indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with International Investors and Clearbridge Mid

The main advantage of trading using opposite International Investors and Clearbridge Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Investors 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.

The idea behind International Investors Gold and Clearbridge Mid Cap pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.