Correlation Between Ivy Emerging and Clarkston Partners

Can any of the company-specific risk be diversified away by investing in both Ivy Emerging and Clarkston Partners 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 Ivy Emerging and Clarkston Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ivy Emerging Markets and Clarkston Partners Fund, you can compare the effects of market volatilities on Ivy Emerging and Clarkston Partners 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 Ivy Emerging with a short position of Clarkston Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivy Emerging and Clarkston Partners.

Diversification Opportunities for Ivy Emerging and Clarkston Partners

0.49

Correlation Coefficient

Ivy Emerging  Clarkston Partners

Very weak diversification

The 3 months correlation between Ivy and Clarkston is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Ivy Emerging Markets and Clarkston Partners Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clarkston Partners and Ivy Emerging 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 Ivy Emerging Markets are associated (or correlated) with Clarkston Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clarkston Partners has no effect on the direction of Ivy Emerging i.e., Ivy Emerging and Clarkston Partners go up and down completely randomly.

Pair Corralation between Ivy Emerging and Clarkston Partners

Assuming the 90 days horizon Ivy Emerging Markets is expected to generate 0.73 times more return on investment than Clarkston Partners. However, Ivy Emerging Markets is 1.38 times less risky than Clarkston Partners. It trades about 0.13 of its potential returns per unit of risk. Clarkston Partners Fund is currently generating about 0.02 per unit of risk. If you would invest  1,547  in Ivy Emerging Markets on May 6, 2025 and sell it today you would earn a total of  102.00  from holding Ivy Emerging Markets or generate 6.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Ivy Emerging Markets  vs.  Clarkston Partners Fund

Ivy Emerging Markets

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ivy Emerging Markets are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Ivy Emerging may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Clarkston Partners

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Clarkston Partners Fund are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong primary indicators, Clarkston Partners is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ivy Emerging and Clarkston Partners

The main advantage of trading using opposite Ivy Emerging and Clarkston Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivy Emerging position performs unexpectedly, Clarkston Partners 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 Clarkston Partners will offset losses from the drop in Clarkston Partners' long position.

The idea behind Ivy Emerging Markets and Clarkston Partners Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.