Correlation Between Clearbridge Energy and Calamos Convertible
Can any of the company-specific risk be diversified away by investing in both Clearbridge Energy and Calamos Convertible 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 Calamos Convertible 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 Calamos Vertible Fund, you can compare the effects of market volatilities on Clearbridge Energy and Calamos Convertible 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 Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearbridge Energy and Calamos Convertible.
Diversification Opportunities for Clearbridge Energy and Calamos Convertible
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Clearbridge and Calamos is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Clearbridge Energy Mlp and Calamos Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible 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 Calamos Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Convertible has no effect on the direction of Clearbridge Energy i.e., Clearbridge Energy and Calamos Convertible go up and down completely randomly.
Pair Corralation between Clearbridge Energy and Calamos Convertible
Assuming the 90 days horizon Clearbridge Energy Mlp is expected to generate 1.53 times more return on investment than Calamos Convertible. However, Clearbridge Energy is 1.53 times more volatile than Calamos Vertible Fund. It trades about 0.02 of its potential returns per unit of risk. Calamos Vertible Fund is currently generating about -0.22 per unit of risk. If you would invest 5,209 in Clearbridge Energy Mlp on October 11, 2024 and sell it today you would earn a total of 17.00 from holding Clearbridge Energy Mlp or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Clearbridge Energy Mlp vs. Calamos Vertible Fund
Performance |
| Timeline |
| Clearbridge Energy Mlp |
| Calamos Convertible |
Clearbridge Energy and Calamos Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearbridge Energy and Calamos Convertible
The main advantage of trading using opposite Clearbridge Energy and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearbridge Energy position performs unexpectedly, Calamos Convertible 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 Calamos Convertible will offset losses from the drop in Calamos Convertible's long position.| Clearbridge Energy vs. Western Assets Emerging | Clearbridge Energy vs. Angel Oak Multi Strategy | Clearbridge Energy vs. Eagle Mlp Strategy | Clearbridge Energy vs. Alphacentric Symmetry Strategy |
| Calamos Convertible vs. Salient Mlp Energy | Calamos Convertible vs. Firsthand Alternative Energy | Calamos Convertible vs. World Energy Fund | Calamos Convertible vs. Clearbridge Energy Mlp |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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