Correlation Between Templeton Growth and Clearbridge Value
Can any of the company-specific risk be diversified away by investing in both Templeton Growth and Clearbridge Value 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 Templeton Growth and Clearbridge Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Templeton Growth Fund and Clearbridge Value Trust, you can compare the effects of market volatilities on Templeton Growth and Clearbridge Value 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 Templeton Growth with a short position of Clearbridge Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Growth and Clearbridge Value.
Diversification Opportunities for Templeton Growth and Clearbridge Value
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Templeton and Clearbridge is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Growth Fund and Clearbridge Value Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Value Trust and Templeton Growth 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 Templeton Growth Fund are associated (or correlated) with Clearbridge Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Value Trust has no effect on the direction of Templeton Growth i.e., Templeton Growth and Clearbridge Value go up and down completely randomly.
Pair Corralation between Templeton Growth and Clearbridge Value
Assuming the 90 days horizon Templeton Growth Fund is expected to generate 0.97 times more return on investment than Clearbridge Value. However, Templeton Growth Fund is 1.03 times less risky than Clearbridge Value. It trades about 0.14 of its potential returns per unit of risk. Clearbridge Value Trust is currently generating about 0.13 per unit of risk. If you would invest 2,889 in Templeton Growth Fund on June 10, 2025 and sell it today you would earn a total of 160.00 from holding Templeton Growth Fund or generate 5.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Templeton Growth Fund vs. Clearbridge Value Trust
Performance |
| Timeline |
| Templeton Growth |
| Clearbridge Value Trust |
Templeton Growth and Clearbridge Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Growth and Clearbridge Value
The main advantage of trading using opposite Templeton Growth and Clearbridge Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Growth position performs unexpectedly, Clearbridge Value 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 Value will offset losses from the drop in Clearbridge Value's long position.| Templeton Growth vs. 1919 Financial Services | Templeton Growth vs. Prudential Financial Services | Templeton Growth vs. Angel Oak Financial | Templeton Growth vs. Gabelli Global Financial |
| Clearbridge Value vs. Goldman Sachs Equity | Clearbridge Value vs. Balanced Fund Retail | Clearbridge Value vs. Gmo International Equity | Clearbridge Value vs. Siit Equity Factor |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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