Correlation Between Aristotle Growth and Advent Claymore
Can any of the company-specific risk be diversified away by investing in both Aristotle Growth and Advent Claymore 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 Aristotle Growth and Advent Claymore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aristotle Growth Equity and Advent Claymore Convertible, you can compare the effects of market volatilities on Aristotle Growth and Advent Claymore 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 Aristotle Growth with a short position of Advent Claymore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aristotle Growth and Advent Claymore.
Diversification Opportunities for Aristotle Growth and Advent Claymore
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aristotle and Advent is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Aristotle Growth Equity and Advent Claymore Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advent Claymore Conv and Aristotle Growth 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 Aristotle Growth Equity are associated (or correlated) with Advent Claymore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advent Claymore Conv has no effect on the direction of Aristotle Growth i.e., Aristotle Growth and Advent Claymore go up and down completely randomly.
Pair Corralation between Aristotle Growth and Advent Claymore
Assuming the 90 days horizon Aristotle Growth is expected to generate 1.55 times less return on investment than Advent Claymore. In addition to that, Aristotle Growth is 1.63 times more volatile than Advent Claymore Convertible. It trades about 0.29 of its total potential returns per unit of risk. Advent Claymore Convertible is currently generating about 0.74 per unit of volatility. If you would invest 1,113 in Advent Claymore Convertible on September 3, 2024 and sell it today you would earn a total of 105.00 from holding Advent Claymore Convertible or generate 9.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aristotle Growth Equity vs. Advent Claymore Convertible
Performance |
| Timeline |
| Aristotle Growth Equity |
| Advent Claymore Conv |
Aristotle Growth and Advent Claymore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aristotle Growth and Advent Claymore
The main advantage of trading using opposite Aristotle Growth and Advent Claymore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aristotle Growth position performs unexpectedly, Advent Claymore 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 Advent Claymore will offset losses from the drop in Advent Claymore's long position.| Aristotle Growth vs. Oklahoma College Savings | Aristotle Growth vs. Chartwell Small Cap | Aristotle Growth vs. Small Midcap Dividend Income | Aristotle Growth vs. Tax Managed Mid Small |
| Advent Claymore vs. Tekla Healthcare Investors | Advent Claymore vs. Tekla Life Sciences | Advent Claymore vs. Cohen Steers Reit | Advent Claymore vs. XAI Octagon Floating |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |