Correlation Between Advent Claymore and Aqr Large
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Aqr Large 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 Aqr Large 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 Aqr Large Cap, you can compare the effects of market volatilities on Advent Claymore and Aqr Large 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 Aqr Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Aqr Large.
Diversification Opportunities for Advent Claymore and Aqr Large
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advent and Aqr is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Aqr Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Large Cap 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 Aqr Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Large Cap has no effect on the direction of Advent Claymore i.e., Advent Claymore and Aqr Large go up and down completely randomly.
Pair Corralation between Advent Claymore and Aqr Large
Considering the 90-day investment horizon Advent Claymore is expected to generate 1.09 times less return on investment than Aqr Large. But when comparing it to its historical volatility, Advent Claymore Convertible is 1.19 times less risky than Aqr Large. It trades about 0.12 of its potential returns per unit of risk. Aqr Large Cap is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,252 in Aqr Large Cap on September 4, 2024 and sell it today you would earn a total of 337.00 from holding Aqr Large Cap or generate 14.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Aqr Large Cap
Performance |
| Timeline |
| Advent Claymore Conv |
| Aqr Large Cap |
Advent Claymore and Aqr Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Aqr Large
The main advantage of trading using opposite Advent Claymore and Aqr Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Aqr Large 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 Aqr Large will offset losses from the drop in Aqr Large's long position.| Advent Claymore vs. Nuveen Global High | Advent Claymore vs. Blackstone Gso Strategic | Advent Claymore vs. Thornburg Income Builder | Advent Claymore vs. Western Asset Diversified |
| Aqr Large vs. Advent Claymore Convertible | Aqr Large vs. Gabelli Convertible And | Aqr Large vs. Lord Abbett Convertible | Aqr Large vs. Absolute Convertible Arbitrage |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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