Correlation Between Advent Claymore and Bny Mellon
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Bny Mellon 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 Bny Mellon 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 Bny Mellon Income, you can compare the effects of market volatilities on Advent Claymore and Bny Mellon 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 Bny Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Bny Mellon.
Diversification Opportunities for Advent Claymore and Bny Mellon
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advent and Bny is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Bny Mellon Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bny Mellon Income 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 Bny Mellon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bny Mellon Income has no effect on the direction of Advent Claymore i.e., Advent Claymore and Bny Mellon go up and down completely randomly.
Pair Corralation between Advent Claymore and Bny Mellon
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 1.41 times more return on investment than Bny Mellon. However, Advent Claymore is 1.41 times more volatile than Bny Mellon Income. It trades about 0.07 of its potential returns per unit of risk. Bny Mellon Income is currently generating about 0.08 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. Bny Mellon Income
Performance |
| Timeline |
| Advent Claymore Conv |
| Bny Mellon Income |
Advent Claymore and Bny Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Bny Mellon
The main advantage of trading using opposite Advent Claymore and Bny Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Bny Mellon 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 Bny Mellon will offset losses from the drop in Bny Mellon'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 |
| Bny Mellon vs. Transamerica Emerging Markets | Bny Mellon vs. Western Assets Emerging | Bny Mellon vs. The Hartford Emerging | Bny Mellon vs. Barings Emerging Markets |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |