Correlation Between ClearBridge Large and ProShares Short
Can any of the company-specific risk be diversified away by investing in both ClearBridge Large and ProShares Short 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 Large and ProShares Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ClearBridge Large Cap and ProShares Short QQQ, you can compare the effects of market volatilities on ClearBridge Large and ProShares Short 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 Large with a short position of ProShares Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of ClearBridge Large and ProShares Short.
Diversification Opportunities for ClearBridge Large and ProShares Short
-0.97 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ClearBridge and ProShares is -0.97. Overlapping area represents the amount of risk that can be diversified away by holding ClearBridge Large Cap and ProShares Short QQQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Short QQQ and ClearBridge Large 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 Large Cap are associated (or correlated) with ProShares Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Short QQQ has no effect on the direction of ClearBridge Large i.e., ClearBridge Large and ProShares Short go up and down completely randomly.
Pair Corralation between ClearBridge Large and ProShares Short
Given the investment horizon of 90 days ClearBridge Large Cap is expected to generate 1.05 times more return on investment than ProShares Short. However, ClearBridge Large is 1.05 times more volatile than ProShares Short QQQ. It trades about 0.08 of its potential returns per unit of risk. ProShares Short QQQ is currently generating about -0.12 per unit of risk. If you would invest 7,452 in ClearBridge Large Cap on August 19, 2025 and sell it today you would earn a total of 665.71 from holding ClearBridge Large Cap or generate 8.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ClearBridge Large Cap vs. ProShares Short QQQ
Performance |
| Timeline |
| ClearBridge Large Cap |
| ProShares Short QQQ |
ClearBridge Large and ProShares Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ClearBridge Large and ProShares Short
The main advantage of trading using opposite ClearBridge Large and ProShares Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ClearBridge Large position performs unexpectedly, ProShares Short 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 ProShares Short will offset losses from the drop in ProShares Short's long position.| ClearBridge Large vs. Nuveen ESG Mid Cap | ClearBridge Large vs. Blackrock Advantage Large | ClearBridge Large vs. JPMorgan Realty Income | ClearBridge Large vs. Nuveen ESG Mid Cap |
| ProShares Short vs. ProShares UltraPro Short | ProShares Short vs. ProShares UltraShort SP500 | ProShares Short vs. ProShares UltraShort QQQ | ProShares Short vs. Direxion Daily Junior |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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