Correlation Between Qs Global and Clearbridge Aggressive

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

By analyzing existing cross correlation between Qs Global Equity and Clearbridge Aggressive Growth, you can compare the effects of market volatilities on Qs Global and Clearbridge Aggressive 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 Qs Global with a short position of Clearbridge Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qs Global and Clearbridge Aggressive.

Diversification Opportunities for Qs Global and Clearbridge Aggressive

0.69

Correlation Coefficient

Qs Global  Clearbridge Aggressive

Poor diversification

The 3 months correlation between SILLX and Clearbridge is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Qs Global Equity and Clearbridge Aggressive Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Aggressive and Qs 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 Qs Global Equity are associated (or correlated) with Clearbridge Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Aggressive has no effect on the direction of Qs Global i.e., Qs Global and Clearbridge Aggressive go up and down completely randomly.

Pair Corralation between Qs Global and Clearbridge Aggressive

Assuming the 90 days horizon Qs Global Equity is expected to generate 0.63 times more return on investment than Clearbridge Aggressive. However, Qs Global Equity is 1.59 times less risky than Clearbridge Aggressive. It trades about -0.12 of its potential returns per unit of risk. Clearbridge Aggressive Growth is currently generating about -0.21 per unit of risk. If you would invest  2,563  in Qs Global Equity on December 4, 2024 and sell it today you would lose (53.00) from holding Qs Global Equity or give up 2.07% of portfolio value over 90 days.

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

Qs Global Equity  vs.  Clearbridge Aggressive Growth

Qs Global Equity

Risk-Adjusted Performance

Very Weak

Over the last 90 days Qs Global Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's essential indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Clearbridge Aggressive

Risk-Adjusted Performance

Very Weak

Over the last 90 days Clearbridge Aggressive Growth 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 fundamental 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 Qs Global and Clearbridge Aggressive

The main advantage of trading using opposite Qs Global and Clearbridge Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qs Global position performs unexpectedly, Clearbridge Aggressive 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 Aggressive will offset losses from the drop in Clearbridge Aggressive's long position.

The idea behind Qs Global Equity and Clearbridge Aggressive Growth 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.