Correlation Between Advent Claymore and Alger Smallcap
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Alger Smallcap 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 Alger Smallcap 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 Alger Smallcap Growth, you can compare the effects of market volatilities on Advent Claymore and Alger Smallcap 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 Alger Smallcap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Alger Smallcap.
Diversification Opportunities for Advent Claymore and Alger Smallcap
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advent and Alger is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Alger Smallcap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Smallcap Growth 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 Alger Smallcap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger Smallcap Growth has no effect on the direction of Advent Claymore i.e., Advent Claymore and Alger Smallcap go up and down completely randomly.
Pair Corralation between Advent Claymore and Alger Smallcap
Considering the 90-day investment horizon Advent Claymore is expected to generate 1.07 times less return on investment than Alger Smallcap. But when comparing it to its historical volatility, Advent Claymore Convertible is 2.67 times less risky than Alger Smallcap. It trades about 0.81 of its potential returns per unit of risk. Alger Smallcap Growth is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 1,070 in Alger Smallcap Growth on September 1, 2024 and sell it today you would earn a total of 125.00 from holding Alger Smallcap Growth or generate 11.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Alger Smallcap Growth
Performance |
| Timeline |
| Advent Claymore Conv |
| Alger Smallcap Growth |
Advent Claymore and Alger Smallcap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Alger Smallcap
The main advantage of trading using opposite Advent Claymore and Alger Smallcap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Alger Smallcap 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 Alger Smallcap will offset losses from the drop in Alger Smallcap'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 |
| Alger Smallcap vs. Growth Strategy Fund | Alger Smallcap vs. Investec Emerging Markets | Alger Smallcap vs. Ashmore Emerging Markets | Alger Smallcap vs. Eagle Mlp Strategy |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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