Correlation Between Dimensional International and ClearBridge Large
Can any of the company-specific risk be diversified away by investing in both Dimensional International and ClearBridge Large 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 Dimensional International and ClearBridge Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dimensional International High and ClearBridge Large Cap, you can compare the effects of market volatilities on Dimensional International and ClearBridge Large 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 Dimensional International with a short position of ClearBridge Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dimensional International and ClearBridge Large.
Diversification Opportunities for Dimensional International and ClearBridge Large
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dimensional and ClearBridge is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Dimensional International High and ClearBridge Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ClearBridge Large Cap and Dimensional International 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 Dimensional International High are associated (or correlated) with ClearBridge Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ClearBridge Large Cap has no effect on the direction of Dimensional International i.e., Dimensional International and ClearBridge Large go up and down completely randomly.
Pair Corralation between Dimensional International and ClearBridge Large
Given the investment horizon of 90 days Dimensional International High is expected to generate 0.62 times more return on investment than ClearBridge Large. However, Dimensional International High is 1.61 times less risky than ClearBridge Large. It trades about 0.14 of its potential returns per unit of risk. ClearBridge Large Cap is currently generating about 0.05 per unit of risk. If you would invest 2,957 in Dimensional International High on August 31, 2025 and sell it today you would earn a total of 175.00 from holding Dimensional International High or generate 5.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dimensional International High vs. ClearBridge Large Cap
Performance |
| Timeline |
| Dimensional International |
| ClearBridge Large Cap |
Dimensional International and ClearBridge Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dimensional International and ClearBridge Large
The main advantage of trading using opposite Dimensional International and ClearBridge Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dimensional International position performs unexpectedly, ClearBridge Large 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 Large will offset losses from the drop in ClearBridge Large's long position.| Dimensional International vs. FT Vest Equity | Dimensional International vs. Northern Lights | Dimensional International vs. Diamond Hill Funds | Dimensional International vs. JPMorgan Fundamental Data |
| ClearBridge Large vs. FT Vest Equity | ClearBridge Large vs. Northern Lights | ClearBridge Large vs. Diamond Hill Funds | ClearBridge Large vs. Dimensional International High |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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