Correlation Between Clearbridge Energy and Kayne Anderson
Can any of the company-specific risk be diversified away by investing in both Clearbridge Energy and Kayne Anderson 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 Energy and Kayne Anderson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clearbridge Energy Mlp and Kayne Anderson MLP, you can compare the effects of market volatilities on Clearbridge Energy and Kayne Anderson 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 Energy with a short position of Kayne Anderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearbridge Energy and Kayne Anderson.
Diversification Opportunities for Clearbridge Energy and Kayne Anderson
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Clearbridge and Kayne is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Clearbridge Energy Mlp and Kayne Anderson MLP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kayne Anderson MLP and Clearbridge Energy 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 Energy Mlp are associated (or correlated) with Kayne Anderson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kayne Anderson MLP has no effect on the direction of Clearbridge Energy i.e., Clearbridge Energy and Kayne Anderson go up and down completely randomly.
Pair Corralation between Clearbridge Energy and Kayne Anderson
Considering the 90-day investment horizon Clearbridge Energy is expected to generate 1.12 times less return on investment than Kayne Anderson. But when comparing it to its historical volatility, Clearbridge Energy Mlp is 1.01 times less risky than Kayne Anderson. It trades about 0.43 of its potential returns per unit of risk. Kayne Anderson MLP is currently generating about 0.48 of returns per unit of risk over similar time horizon. If you would invest 1,161 in Kayne Anderson MLP on August 28, 2024 and sell it today you would earn a total of 173.00 from holding Kayne Anderson MLP or generate 14.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clearbridge Energy Mlp vs. Kayne Anderson MLP
Performance |
| Timeline |
| Clearbridge Energy Mlp |
| Kayne Anderson MLP |
Clearbridge Energy and Kayne Anderson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearbridge Energy and Kayne Anderson
The main advantage of trading using opposite Clearbridge Energy and Kayne Anderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearbridge Energy position performs unexpectedly, Kayne Anderson 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 Kayne Anderson will offset losses from the drop in Kayne Anderson's long position.| Clearbridge Energy vs. BlackRock Capital Allocation | Clearbridge Energy vs. GCM Grosvenor | Clearbridge Energy vs. MFS High Yield | Clearbridge Energy vs. First Trust High |
| Kayne Anderson vs. Tortoise Energy Infrastructure | Kayne Anderson vs. Cohen And Steers | Kayne Anderson vs. Aquagold International | Kayne Anderson vs. Morningstar Unconstrained Allocation |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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