Correlation Between Clearbridge Energy and Calamos Convertible

Can any of the company-specific risk be diversified away by investing in both Clearbridge Energy and Calamos Convertible 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 Calamos Convertible 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 Calamos Convertible And, you can compare the effects of market volatilities on Clearbridge Energy and Calamos Convertible 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 Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearbridge Energy and Calamos Convertible.

Diversification Opportunities for Clearbridge Energy and Calamos Convertible

0.91

Correlation Coefficient

Clearbridge Energy  Calamos Convertible

Almost no diversification

The 3 months correlation between Clearbridge and Calamos is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Clearbridge Energy Mlp and Calamos Convertible And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible And 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 Calamos Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Convertible And has no effect on the direction of Clearbridge Energy i.e., Clearbridge Energy and Calamos Convertible go up and down completely randomly.

Pair Corralation between Clearbridge Energy and Calamos Convertible

Considering the 90-day investment horizon Clearbridge Energy Mlp is expected to generate 1.8 times more return on investment than Calamos Convertible. However, Clearbridge Energy is 1.8 times more volatile than Calamos Convertible And. It trades about 0.14 of its potential returns per unit of risk. Calamos Convertible And is currently generating about 0.24 per unit of risk. If you would invest  4,332  in Clearbridge Energy Mlp on May 6, 2025 and sell it today you would earn a total of  415.00  from holding Clearbridge Energy Mlp or generate 9.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Clearbridge Energy Mlp  vs.  Calamos Convertible And

Clearbridge Energy Mlp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Clearbridge Energy Mlp are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of very uncertain primary indicators, Clearbridge Energy may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Calamos Convertible And

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Convertible And are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly inconsistent technical indicators, Calamos Convertible may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Clearbridge Energy and Calamos Convertible

The main advantage of trading using opposite Clearbridge Energy and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearbridge Energy position performs unexpectedly, Calamos Convertible 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 Calamos Convertible will offset losses from the drop in Calamos Convertible's long position.

The idea behind Clearbridge Energy Mlp and Calamos Convertible And pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .