Correlation Between Advent Claymore and Baron Select
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Baron Select 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 Baron Select 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 Baron Select Funds, you can compare the effects of market volatilities on Advent Claymore and Baron Select 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 Baron Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Baron Select.
Diversification Opportunities for Advent Claymore and Baron Select
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Advent and Baron is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Baron Select Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Select Funds 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 Baron Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Select Funds has no effect on the direction of Advent Claymore i.e., Advent Claymore and Baron Select go up and down completely randomly.
Pair Corralation between Advent Claymore and Baron Select
Considering the 90-day investment horizon Advent Claymore is expected to generate 2.19 times less return on investment than Baron Select. But when comparing it to its historical volatility, Advent Claymore Convertible is 1.44 times less risky than Baron Select. It trades about 0.09 of its potential returns per unit of risk. Baron Select Funds is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 543.00 in Baron Select Funds on September 14, 2024 and sell it today you would earn a total of 825.00 from holding Baron Select Funds or generate 151.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Baron Select Funds
Performance |
| Timeline |
| Advent Claymore Conv |
| Baron Select Funds |
Advent Claymore and Baron Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Baron Select
The main advantage of trading using opposite Advent Claymore and Baron Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Baron Select 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 Baron Select will offset losses from the drop in Baron Select'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 |
| Baron Select vs. Qs Moderate Growth | Baron Select vs. Franklin Lifesmart Retirement | Baron Select vs. Sierra E Retirement | Baron Select vs. Transamerica Cleartrack Retirement |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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