Correlation Between Clearbridge Energy and The Hartford
Can any of the company-specific risk be diversified away by investing in both Clearbridge Energy and The Hartford 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 The Hartford 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 The Hartford Small, you can compare the effects of market volatilities on Clearbridge Energy and The Hartford 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 The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearbridge Energy and The Hartford.
Diversification Opportunities for Clearbridge Energy and The Hartford
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Clearbridge and The is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Clearbridge Energy Mlp and The Hartford Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Small 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 The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Small has no effect on the direction of Clearbridge Energy i.e., Clearbridge Energy and The Hartford go up and down completely randomly.
Pair Corralation between Clearbridge Energy and The Hartford
Assuming the 90 days horizon Clearbridge Energy Mlp is expected to generate 0.88 times more return on investment than The Hartford. However, Clearbridge Energy Mlp is 1.13 times less risky than The Hartford. It trades about 0.17 of its potential returns per unit of risk. The Hartford Small is currently generating about 0.1 per unit of risk. If you would invest 3,669 in Clearbridge Energy Mlp on September 4, 2024 and sell it today you would earn a total of 1,913 from holding Clearbridge Energy Mlp or generate 52.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
Clearbridge Energy Mlp vs. The Hartford Small
Performance |
| Timeline |
| Clearbridge Energy Mlp |
| Hartford Small |
Clearbridge Energy and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearbridge Energy and The Hartford
The main advantage of trading using opposite Clearbridge Energy and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearbridge Energy position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| Clearbridge Energy vs. Chase Growth Fund | Clearbridge Energy vs. Nationwide Growth Fund | Clearbridge Energy vs. Rational Defensive Growth | Clearbridge Energy vs. Pace Large Growth |
| The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. Hartford Growth Opportunities |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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