Correlation Between Clearbridge Appreciation and Clearbridge Mid
Can any of the company-specific risk be diversified away by investing in both Clearbridge Appreciation 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 Clearbridge Appreciation and Clearbridge Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clearbridge Appreciation Fund and Clearbridge Mid Cap, you can compare the effects of market volatilities on Clearbridge Appreciation 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 Clearbridge Appreciation with a short position of Clearbridge Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearbridge Appreciation and Clearbridge Mid.
Diversification Opportunities for Clearbridge Appreciation and Clearbridge Mid
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Clearbridge and Clearbridge is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Clearbridge Appreciation Fund 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 Clearbridge Appreciation 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 Appreciation Fund 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 Clearbridge Appreciation i.e., Clearbridge Appreciation and Clearbridge Mid go up and down completely randomly.
Pair Corralation between Clearbridge Appreciation and Clearbridge Mid
Assuming the 90 days horizon Clearbridge Appreciation Fund is expected to generate 0.76 times more return on investment than Clearbridge Mid. However, Clearbridge Appreciation Fund is 1.32 times less risky than Clearbridge Mid. It trades about 0.09 of its potential returns per unit of risk. Clearbridge Mid Cap is currently generating about 0.05 per unit of risk. If you would invest 2,505 in Clearbridge Appreciation Fund on June 12, 2025 and sell it today you would earn a total of 1,134 from holding Clearbridge Appreciation Fund or generate 45.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clearbridge Appreciation Fund vs. Clearbridge Mid Cap
Performance |
| Timeline |
| Clearbridge Appreciation |
| Clearbridge Mid Cap |
Clearbridge Appreciation and Clearbridge Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearbridge Appreciation and Clearbridge Mid
The main advantage of trading using opposite Clearbridge Appreciation and Clearbridge Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearbridge Appreciation 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.| Clearbridge Appreciation vs. Vanguard Total Stock | Clearbridge Appreciation vs. Vanguard 500 Index | Clearbridge Appreciation vs. Vanguard Total Stock | Clearbridge Appreciation vs. Vanguard Total Stock |
| Clearbridge Mid vs. Financial Industries Fund | Clearbridge Mid vs. Davis Financial Fund | Clearbridge Mid vs. Vanguard Money Market | Clearbridge Mid vs. Fidelity Money Market |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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