Correlation Between Clearbridge Appreciation and Western Asset
Can any of the company-specific risk be diversified away by investing in both Clearbridge Appreciation and Western Asset 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 Clearbridge Appreciation and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clearbridge Appreciation Fund and Western Asset Smash, you can compare the effects of market volatilities on Clearbridge Appreciation and Western Asset 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 Clearbridge Appreciation with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearbridge Appreciation and Western Asset.
Diversification Opportunities for Clearbridge Appreciation and Western Asset
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Clearbridge and Western is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Clearbridge Appreciation Fund and Western Asset Smash in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Smash and Clearbridge Appreciation 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 Clearbridge Appreciation Fund are associated (or correlated) with Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Smash has no effect on the direction of Clearbridge Appreciation i.e., Clearbridge Appreciation and Western Asset go up and down completely randomly.
Pair Corralation between Clearbridge Appreciation and Western Asset
Assuming the 90 days horizon Clearbridge Appreciation Fund is expected to generate 1.98 times more return on investment than Western Asset. However, Clearbridge Appreciation is 1.98 times more volatile than Western Asset Smash. It trades about -0.03 of its potential returns per unit of risk. Western Asset Smash is currently generating about -0.15 per unit of risk. If you would invest 3,469 in Clearbridge Appreciation Fund on September 15, 2024 and sell it today you would lose (97.00) from holding Clearbridge Appreciation Fund or give up 2.8% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Clearbridge Appreciation Fund vs. Western Asset Smash
Performance |
Timeline |
Clearbridge Appreciation |
Western Asset Smash |
Clearbridge Appreciation and Western Asset Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Clearbridge Appreciation and Western Asset
The main advantage of trading using opposite Clearbridge Appreciation and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearbridge Appreciation position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.Clearbridge Appreciation vs. Mirova Global Green | ||
Clearbridge Appreciation vs. Ab Global Bond | ||
Clearbridge Appreciation vs. Jhancock Global Equity | ||
Clearbridge Appreciation vs. Commonwealth Global Fund |
Western Asset vs. Clearbridge Aggressive Growth | ||
Western Asset vs. Clearbridge Small Cap | ||
Western Asset vs. Qs International Equity | ||
Western Asset vs. Clearbridge Appreciation Fund |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |