Correlation Between Clearbridge Energy and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Clearbridge Energy and Credit Suisse 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 Credit Suisse 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 Credit Suisse Managed, you can compare the effects of market volatilities on Clearbridge Energy and Credit Suisse 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 Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearbridge Energy and Credit Suisse.
Diversification Opportunities for Clearbridge Energy and Credit Suisse
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Clearbridge and Credit is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Clearbridge Energy Mlp and Credit Suisse Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Managed 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 Credit Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Suisse Managed has no effect on the direction of Clearbridge Energy i.e., Clearbridge Energy and Credit Suisse go up and down completely randomly.
Pair Corralation between Clearbridge Energy and Credit Suisse
Assuming the 90 days horizon Clearbridge Energy Mlp is expected to generate 2.28 times more return on investment than Credit Suisse. However, Clearbridge Energy is 2.28 times more volatile than Credit Suisse Managed. It trades about 0.11 of its potential returns per unit of risk. Credit Suisse Managed is currently generating about -0.02 per unit of risk. If you would invest 4,949 in Clearbridge Energy Mlp on September 13, 2024 and sell it today you would earn a total of 260.00 from holding Clearbridge Energy Mlp or generate 5.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clearbridge Energy Mlp vs. Credit Suisse Managed
Performance |
| Timeline |
| Clearbridge Energy Mlp |
| Credit Suisse Managed |
Clearbridge Energy and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearbridge Energy and Credit Suisse
The main advantage of trading using opposite Clearbridge Energy and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearbridge Energy position performs unexpectedly, Credit Suisse 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 Credit Suisse will offset losses from the drop in Credit Suisse's long position.| Clearbridge Energy vs. Mid Cap Growth | Clearbridge Energy vs. Pace Smallmedium Growth | Clearbridge Energy vs. Ftfa Franklin Templeton Growth | Clearbridge Energy vs. Rational Defensive Growth |
| Credit Suisse vs. Jhancock Real Estate | Credit Suisse vs. Simt Real Estate | Credit Suisse vs. Amg Managers Centersquare | Credit Suisse vs. Virtus Real Estate |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Global Correlations Find global opportunities by holding instruments from different markets |