Correlation Between Clearbridge Energy and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Clearbridge Energy and Loomis Sayles 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 Loomis Sayles 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 Loomis Sayles Institutional, you can compare the effects of market volatilities on Clearbridge Energy and Loomis Sayles 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 Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearbridge Energy and Loomis Sayles.
Diversification Opportunities for Clearbridge Energy and Loomis Sayles
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Clearbridge and Loomis is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Clearbridge Energy Mlp and Loomis Sayles Institutional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Instit 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 Loomis Sayles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loomis Sayles Instit has no effect on the direction of Clearbridge Energy i.e., Clearbridge Energy and Loomis Sayles go up and down completely randomly.
Pair Corralation between Clearbridge Energy and Loomis Sayles
Assuming the 90 days horizon Clearbridge Energy Mlp is expected to generate 6.46 times more return on investment than Loomis Sayles. However, Clearbridge Energy is 6.46 times more volatile than Loomis Sayles Institutional. It trades about 0.5 of its potential returns per unit of risk. Loomis Sayles Institutional is currently generating about 0.31 per unit of risk. If you would invest 4,855 in Clearbridge Energy Mlp on August 26, 2024 and sell it today you would earn a total of 635.00 from holding Clearbridge Energy Mlp or generate 13.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clearbridge Energy Mlp vs. Loomis Sayles Institutional
Performance |
| Timeline |
| Clearbridge Energy Mlp |
| Loomis Sayles Instit |
Clearbridge Energy and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearbridge Energy and Loomis Sayles
The main advantage of trading using opposite Clearbridge Energy and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearbridge Energy position performs unexpectedly, Loomis Sayles 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 Loomis Sayles will offset losses from the drop in Loomis Sayles' long position.| Clearbridge Energy vs. Ep Emerging Markets | Clearbridge Energy vs. Extended Market Index | Clearbridge Energy vs. Origin Emerging Markets | Clearbridge Energy vs. Pnc Emerging Markets |
| Loomis Sayles vs. Calvert Global Energy | Loomis Sayles vs. Clearbridge Energy Mlp | Loomis Sayles vs. Hennessy Bp Energy | Loomis Sayles vs. Alpsalerian Energy Infrastructure |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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