Correlation Between AlphaMark Actively and ClearBridge Dividend
Can any of the company-specific risk be diversified away by investing in both AlphaMark Actively and ClearBridge Dividend 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 AlphaMark Actively and ClearBridge Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AlphaMark Actively Managed and ClearBridge Dividend Strategy, you can compare the effects of market volatilities on AlphaMark Actively and ClearBridge Dividend 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 AlphaMark Actively with a short position of ClearBridge Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of AlphaMark Actively and ClearBridge Dividend.
Diversification Opportunities for AlphaMark Actively and ClearBridge Dividend
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AlphaMark and ClearBridge is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding AlphaMark Actively Managed and ClearBridge Dividend Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ClearBridge Dividend and AlphaMark Actively 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 AlphaMark Actively Managed are associated (or correlated) with ClearBridge Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ClearBridge Dividend has no effect on the direction of AlphaMark Actively i.e., AlphaMark Actively and ClearBridge Dividend go up and down completely randomly.
Pair Corralation between AlphaMark Actively and ClearBridge Dividend
Given the investment horizon of 90 days AlphaMark Actively Managed is expected to generate 1.77 times more return on investment than ClearBridge Dividend. However, AlphaMark Actively is 1.77 times more volatile than ClearBridge Dividend Strategy. It trades about 0.07 of its potential returns per unit of risk. ClearBridge Dividend Strategy is currently generating about 0.09 per unit of risk. If you would invest 2,437 in AlphaMark Actively Managed on September 4, 2024 and sell it today you would earn a total of 1,108 from holding AlphaMark Actively Managed or generate 45.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.38% |
| Values | Daily Returns |
AlphaMark Actively Managed vs. ClearBridge Dividend Strategy
Performance |
| Timeline |
| AlphaMark Actively |
| ClearBridge Dividend |
AlphaMark Actively and ClearBridge Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AlphaMark Actively and ClearBridge Dividend
The main advantage of trading using opposite AlphaMark Actively and ClearBridge Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AlphaMark Actively position performs unexpectedly, ClearBridge Dividend 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 Dividend will offset losses from the drop in ClearBridge Dividend's long position.| AlphaMark Actively vs. First Trust RiverFront | AlphaMark Actively vs. First Trust RiverFront | AlphaMark Actively vs. Arrow DWA Tactical | AlphaMark Actively vs. First Trust Developed |
| ClearBridge Dividend vs. Global X Funds | ClearBridge Dividend vs. Dell Technologies | ClearBridge Dividend vs. Juniper Networks | ClearBridge Dividend vs. HUMANA INC |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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