Correlation Between Mainstay Mackay and Clearbridge Energy
Can any of the company-specific risk be diversified away by investing in both Mainstay Mackay and Clearbridge Energy 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 Mainstay Mackay and Clearbridge Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Mackay Strategic and Clearbridge Energy Mlp, you can compare the effects of market volatilities on Mainstay Mackay and Clearbridge Energy 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 Mainstay Mackay with a short position of Clearbridge Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Mackay and Clearbridge Energy.
Diversification Opportunities for Mainstay Mackay and Clearbridge Energy
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mainstay and Clearbridge is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Mackay Strategic and Clearbridge Energy Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Energy Mlp and Mainstay Mackay 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 Mainstay Mackay Strategic are associated (or correlated) with Clearbridge Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Energy Mlp has no effect on the direction of Mainstay Mackay i.e., Mainstay Mackay and Clearbridge Energy go up and down completely randomly.
Pair Corralation between Mainstay Mackay and Clearbridge Energy
Assuming the 90 days horizon Mainstay Mackay is expected to generate 16.32 times less return on investment than Clearbridge Energy. But when comparing it to its historical volatility, Mainstay Mackay Strategic is 4.87 times less risky than Clearbridge Energy. It trades about 0.19 of its potential returns per unit of risk. Clearbridge Energy Mlp is currently generating about 0.65 of returns per unit of risk over similar time horizon. If you would invest 4,825 in Clearbridge Energy Mlp on September 4, 2024 and sell it today you would earn a total of 757.00 from holding Clearbridge Energy Mlp or generate 15.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Mainstay Mackay Strategic vs. Clearbridge Energy Mlp
Performance |
| Timeline |
| Mainstay Mackay Strategic |
| Clearbridge Energy Mlp |
Mainstay Mackay and Clearbridge Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Mackay and Clearbridge Energy
The main advantage of trading using opposite Mainstay Mackay and Clearbridge Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Mackay position performs unexpectedly, Clearbridge Energy 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 Energy will offset losses from the drop in Clearbridge Energy's long position.| Mainstay Mackay vs. Commodities Strategy Fund | Mainstay Mackay vs. Barings Emerging Markets | Mainstay Mackay vs. Nasdaq 100 2x Strategy | Mainstay Mackay vs. Legg Mason Partners |
| Clearbridge Energy vs. Chase Growth Fund | Clearbridge Energy vs. Nationwide Growth Fund | Clearbridge Energy vs. Rational Defensive Growth | Clearbridge Energy vs. Pace Large Growth |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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