Correlation Between Advent Claymore and Ab Global
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Ab Global 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 Ab Global 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 Ab Global Real, you can compare the effects of market volatilities on Advent Claymore and Ab Global 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 Ab Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Ab Global.
Diversification Opportunities for Advent Claymore and Ab Global
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Advent and ARSYX is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Ab Global Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global Real 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 Ab Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Global Real has no effect on the direction of Advent Claymore i.e., Advent Claymore and Ab Global go up and down completely randomly.
Pair Corralation between Advent Claymore and Ab Global
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 1.17 times more return on investment than Ab Global. However, Advent Claymore is 1.17 times more volatile than Ab Global Real. It trades about 0.13 of its potential returns per unit of risk. Ab Global Real is currently generating about 0.11 per unit of risk. If you would invest 1,123 in Advent Claymore Convertible on September 5, 2024 and sell it today you would earn a total of 107.00 from holding Advent Claymore Convertible or generate 9.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Ab Global Real
Performance |
| Timeline |
| Advent Claymore Conv |
| Ab Global Real |
Advent Claymore and Ab Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Ab Global
The main advantage of trading using opposite Advent Claymore and Ab Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Ab Global 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 Ab Global will offset losses from the drop in Ab Global'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 |
| Ab Global vs. Lord Abbett Convertible | Ab Global vs. Putnam Convertible Incm Gwth | Ab Global vs. Advent Claymore Convertible | Ab Global vs. Virtus Convertible |
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.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |