Correlation Between Advent Claymore and American Beacon
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and American Beacon 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 Advent Claymore and American Beacon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advent Claymore Convertible and American Beacon Mid Cap, you can compare the effects of market volatilities on Advent Claymore and American Beacon 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 Advent Claymore with a short position of American Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and American Beacon.
Diversification Opportunities for Advent Claymore and American Beacon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Advent and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and American Beacon Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Mid and Advent Claymore 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 Advent Claymore Convertible are associated (or correlated) with American Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Beacon Mid has no effect on the direction of Advent Claymore i.e., Advent Claymore and American Beacon go up and down completely randomly.
Pair Corralation between Advent Claymore and American Beacon
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 | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. American Beacon Mid Cap
Performance |
| Timeline |
| Advent Claymore Conv |
| American Beacon Mid |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Advent Claymore and American Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and American Beacon
The main advantage of trading using opposite Advent Claymore and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, American Beacon 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 American Beacon will offset losses from the drop in American Beacon's long position.| Advent Claymore vs. Tekla Healthcare Investors | Advent Claymore vs. Tekla Life Sciences | Advent Claymore vs. Cohen Steers Reit | Advent Claymore vs. XAI Octagon Floating |
| American Beacon vs. Lord Abbett Convertible | American Beacon vs. Fidelity Sai Convertible | American Beacon vs. Advent Claymore Convertible | American Beacon vs. Gabelli Convertible And |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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