Correlation Between Firsthand Alternative and Clearbridge Variable
Can any of the company-specific risk be diversified away by investing in both Firsthand Alternative and Clearbridge Variable 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 Firsthand Alternative and Clearbridge Variable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firsthand Alternative Energy and Clearbridge Variable Appreciation, you can compare the effects of market volatilities on Firsthand Alternative and Clearbridge Variable 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 Firsthand Alternative with a short position of Clearbridge Variable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Alternative and Clearbridge Variable.
Diversification Opportunities for Firsthand Alternative and Clearbridge Variable
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Firsthand and Clearbridge is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Alternative Energy and Clearbridge Variable Appreciat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Variable and Firsthand Alternative 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 Firsthand Alternative Energy are associated (or correlated) with Clearbridge Variable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Variable has no effect on the direction of Firsthand Alternative i.e., Firsthand Alternative and Clearbridge Variable go up and down completely randomly.
Pair Corralation between Firsthand Alternative and Clearbridge Variable
Assuming the 90 days horizon Firsthand Alternative Energy is expected to generate 2.72 times more return on investment than Clearbridge Variable. However, Firsthand Alternative is 2.72 times more volatile than Clearbridge Variable Appreciation. It trades about 0.24 of its potential returns per unit of risk. Clearbridge Variable Appreciation is currently generating about 0.25 per unit of risk. If you would invest 882.00 in Firsthand Alternative Energy on May 30, 2025 and sell it today you would earn a total of 215.00 from holding Firsthand Alternative Energy or generate 24.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firsthand Alternative Energy vs. Clearbridge Variable Appreciat
Performance |
| Timeline |
| Firsthand Alternative |
| Clearbridge Variable |
Firsthand Alternative and Clearbridge Variable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Alternative and Clearbridge Variable
The main advantage of trading using opposite Firsthand Alternative and Clearbridge Variable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Alternative position performs unexpectedly, Clearbridge Variable 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 Variable will offset losses from the drop in Clearbridge Variable's long position.| Firsthand Alternative vs. Calvert Global Energy | Firsthand Alternative vs. New Alternatives Fund | Firsthand Alternative vs. Shelton Green Alpha | Firsthand Alternative vs. Thrivent High Yield |
| Clearbridge Variable vs. American Century Etf | Clearbridge Variable vs. Vanguard Small Cap Value | Clearbridge Variable vs. Goldman Sachs Small | Clearbridge Variable vs. Queens Road Small |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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