Correlation Between Clearbridge Energy and Hartford Capital
Can any of the company-specific risk be diversified away by investing in both Clearbridge Energy and Hartford Capital 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 Hartford Capital 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 Hartford Capital Appreciation, you can compare the effects of market volatilities on Clearbridge Energy and Hartford Capital 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 Hartford Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearbridge Energy and Hartford Capital.
Diversification Opportunities for Clearbridge Energy and Hartford Capital
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Clearbridge and Hartford is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Clearbridge Energy Mlp and Hartford Capital Appreciation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Capital App 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 Hartford Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Capital App has no effect on the direction of Clearbridge Energy i.e., Clearbridge Energy and Hartford Capital go up and down completely randomly.
Pair Corralation between Clearbridge Energy and Hartford Capital
Assuming the 90 days horizon Clearbridge Energy Mlp is expected to generate 1.65 times more return on investment than Hartford Capital. However, Clearbridge Energy is 1.65 times more volatile than Hartford Capital Appreciation. It trades about 0.09 of its potential returns per unit of risk. Hartford Capital Appreciation is currently generating about 0.1 per unit of risk. If you would invest 3,289 in Clearbridge Energy Mlp on August 30, 2024 and sell it today you would earn a total of 2,201 from holding Clearbridge Energy Mlp or generate 66.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clearbridge Energy Mlp vs. Hartford Capital Appreciation
Performance |
| Timeline |
| Clearbridge Energy Mlp |
| Hartford Capital App |
Clearbridge Energy and Hartford Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearbridge Energy and Hartford Capital
The main advantage of trading using opposite Clearbridge Energy and Hartford Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearbridge Energy position performs unexpectedly, Hartford Capital 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 Hartford Capital will offset losses from the drop in Hartford Capital's long position.| Clearbridge Energy vs. Vanguard Total Stock | Clearbridge Energy vs. Vanguard 500 Index | Clearbridge Energy vs. Vanguard Total Stock | Clearbridge Energy vs. Vanguard Total Stock |
| Hartford Capital vs. Artisan High Income | Hartford Capital vs. Prudential High Yield | Hartford Capital vs. Siit High Yield | Hartford Capital vs. Gmo High Yield |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |