Correlation Between Wells Fargo and Clearbridge Mid
Can any of the company-specific risk be diversified away by investing in both Wells Fargo 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 Wells Fargo and Clearbridge Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wells Fargo Diversified and Clearbridge Mid Cap, you can compare the effects of market volatilities on Wells Fargo 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 Wells Fargo with a short position of Clearbridge Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wells Fargo and Clearbridge Mid.
Diversification Opportunities for Wells Fargo and Clearbridge Mid
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wells and Clearbridge is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Wells Fargo Diversified 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 Wells Fargo 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 Wells Fargo Diversified 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 Wells Fargo i.e., Wells Fargo and Clearbridge Mid go up and down completely randomly.
Pair Corralation between Wells Fargo and Clearbridge Mid
Assuming the 90 days horizon Wells Fargo Diversified is expected to generate 1.18 times more return on investment than Clearbridge Mid. However, Wells Fargo is 1.18 times more volatile than Clearbridge Mid Cap. It trades about 0.16 of its potential returns per unit of risk. Clearbridge Mid Cap is currently generating about -0.02 per unit of risk. If you would invest 1,478 in Wells Fargo Diversified on August 31, 2025 and sell it today you would earn a total of 158.00 from holding Wells Fargo Diversified or generate 10.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wells Fargo Diversified vs. Clearbridge Mid Cap
Performance |
| Timeline |
| Wells Fargo Diversified |
| Clearbridge Mid Cap |
Wells Fargo and Clearbridge Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wells Fargo and Clearbridge Mid
The main advantage of trading using opposite Wells Fargo and Clearbridge Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wells Fargo 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.| Wells Fargo vs. Ab Global Bond | Wells Fargo vs. Federated Global Allocation | Wells Fargo vs. Dreyfusstandish Global Fixed | Wells Fargo vs. Gmo Global Equity |
| Clearbridge Mid vs. Us Government Securities | Clearbridge Mid vs. Federated Government Income | Clearbridge Mid vs. Us Government Securities | Clearbridge Mid vs. Ridgeworth Seix Government |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |