Correlation Between Advent Claymore and Alger Spectra
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Alger Spectra 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 Spectra 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 Spectra, you can compare the effects of market volatilities on Advent Claymore and Alger Spectra 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 Spectra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Alger Spectra.
Diversification Opportunities for Advent Claymore and Alger Spectra
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advent and Alger is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Alger Spectra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Spectra 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 Spectra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger Spectra has no effect on the direction of Advent Claymore i.e., Advent Claymore and Alger Spectra go up and down completely randomly.
Pair Corralation between Advent Claymore and Alger Spectra
Considering the 90-day investment horizon Advent Claymore is expected to generate 2.0 times less return on investment than Alger Spectra. But when comparing it to its historical volatility, Advent Claymore Convertible is 1.15 times less risky than Alger Spectra. It trades about 0.07 of its potential returns per unit of risk. Alger Spectra is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,595 in Alger Spectra on September 5, 2024 and sell it today you would earn a total of 1,727 from holding Alger Spectra or generate 108.28% 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. Alger Spectra
Performance |
| Timeline |
| Advent Claymore Conv |
| Alger Spectra |
Advent Claymore and Alger Spectra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Alger Spectra
The main advantage of trading using opposite Advent Claymore and Alger Spectra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Alger Spectra 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 Spectra will offset losses from the drop in Alger Spectra'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 Spectra vs. Alger Capital Appreciation | Alger Spectra vs. Alger Capital Appreciation | Alger Spectra vs. Select Fund C | Alger Spectra vs. Select Fund R |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |