Correlation Between Advent Claymore and Allianzgi Income
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Allianzgi Income 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 Allianzgi Income 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 Allianzgi Income Growth, you can compare the effects of market volatilities on Advent Claymore and Allianzgi Income 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 Allianzgi Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Allianzgi Income.
Diversification Opportunities for Advent Claymore and Allianzgi Income
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advent and Allianzgi is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Allianzgi Income Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Income 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 Allianzgi Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Income Growth has no effect on the direction of Advent Claymore i.e., Advent Claymore and Allianzgi Income go up and down completely randomly.
Pair Corralation between Advent Claymore and Allianzgi Income
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 0.94 times more return on investment than Allianzgi Income. However, Advent Claymore Convertible is 1.07 times less risky than Allianzgi Income. It trades about 0.07 of its potential returns per unit of risk. Allianzgi Income Growth is currently generating about 0.03 per unit of risk. If you would invest 867.00 in Advent Claymore Convertible on September 3, 2024 and sell it today you would earn a total of 351.00 from holding Advent Claymore Convertible or generate 40.48% 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. Allianzgi Income Growth
Performance |
| Timeline |
| Advent Claymore Conv |
| Allianzgi Income Growth |
Advent Claymore and Allianzgi Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Allianzgi Income
The main advantage of trading using opposite Advent Claymore and Allianzgi Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Allianzgi Income 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 Allianzgi Income will offset losses from the drop in Allianzgi Income'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 |
| Allianzgi Income vs. Putnam Convertible Incm Gwth | Allianzgi Income vs. Advent Claymore Convertible | Allianzgi Income vs. Rationalpier 88 Convertible | Allianzgi Income vs. Fidelity Sai 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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