Correlation Between Clarkston Founders and Value Line

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

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

Diversification Opportunities for Clarkston Founders and Value Line

-0.05

Correlation Coefficient

Clarkston Founders  Value Line

Good diversification

The 3 months correlation between Clarkston and Value is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Clarkston Founders Fund and Value Line Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value Line Asset and Clarkston Founders 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 Clarkston Founders Fund are associated (or correlated) with Value Line. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value Line Asset has no effect on the direction of Clarkston Founders i.e., Clarkston Founders and Value Line go up and down completely randomly.

Pair Corralation between Clarkston Founders and Value Line

Assuming the 90 days horizon Clarkston Founders Fund is expected to generate 1.79 times more return on investment than Value Line. However, Clarkston Founders is 1.79 times more volatile than Value Line Asset. It trades about 0.05 of its potential returns per unit of risk. Value Line Asset is currently generating about -0.12 per unit of risk. If you would invest  1,673  in Clarkston Founders Fund on September 12, 2025 and sell it today you would earn a total of  46.00  from holding Clarkston Founders Fund or generate 2.75% return on investment over 90 days.

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

Clarkston Founders Fund  vs.  Value Line Asset

Clarkston Founders

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Clarkston Founders Fund are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Clarkston Founders is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Value Line Asset

Risk-Adjusted Performance

Weakest

Over the last 90 days Value Line Asset has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Value Line is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Clarkston Founders and Value Line

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

The idea behind Clarkston Founders Fund and Value Line Asset 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.