Correlation Between Clearbridge Energy and Payden Floating
Can any of the company-specific risk be diversified away by investing in both Clearbridge Energy and Payden Floating 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 Payden Floating 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 Payden Floating Rate, you can compare the effects of market volatilities on Clearbridge Energy and Payden Floating 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 Payden Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearbridge Energy and Payden Floating.
Diversification Opportunities for Clearbridge Energy and Payden Floating
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Clearbridge and Payden is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Clearbridge Energy Mlp and Payden Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payden Floating Rate 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 Payden Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payden Floating Rate has no effect on the direction of Clearbridge Energy i.e., Clearbridge Energy and Payden Floating go up and down completely randomly.
Pair Corralation between Clearbridge Energy and Payden Floating
Assuming the 90 days horizon Clearbridge Energy Mlp is expected to generate 11.15 times more return on investment than Payden Floating. However, Clearbridge Energy is 11.15 times more volatile than Payden Floating Rate. It trades about 0.23 of its potential returns per unit of risk. Payden Floating Rate is currently generating about 0.08 per unit of risk. If you would invest 5,213 in Clearbridge Energy Mlp on November 3, 2024 and sell it today you would earn a total of 364.00 from holding Clearbridge Energy Mlp or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clearbridge Energy Mlp vs. Payden Floating Rate
Performance |
| Timeline |
| Clearbridge Energy Mlp |
| Payden Floating Rate |
Clearbridge Energy and Payden Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearbridge Energy and Payden Floating
The main advantage of trading using opposite Clearbridge Energy and Payden Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearbridge Energy position performs unexpectedly, Payden Floating 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 Payden Floating will offset losses from the drop in Payden Floating's long position.| Clearbridge Energy vs. Absolute Convertible Arbitrage | Clearbridge Energy vs. Fidelity Sai Convertible | Clearbridge Energy vs. Rationalpier 88 Convertible | Clearbridge Energy vs. Gabelli Convertible And |
| Payden Floating vs. Ab Bond Inflation | Payden Floating vs. Gmo Emerging Ntry | Payden Floating vs. Franklin Adjustable Government | Payden Floating vs. Ab Bond Inflation |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |