Correlation Between Advent Claymore and Us Government
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Us Government 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 Us Government 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 Us Government Securities, you can compare the effects of market volatilities on Advent Claymore and Us Government 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 Us Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Us Government.
Diversification Opportunities for Advent Claymore and Us Government
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Advent and CAUKX is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Us Government Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Us Government Securities 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 Us Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Us Government Securities has no effect on the direction of Advent Claymore i.e., Advent Claymore and Us Government go up and down completely randomly.
Pair Corralation between Advent Claymore and Us Government
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 1.86 times more return on investment than Us Government. However, Advent Claymore is 1.86 times more volatile than Us Government Securities. It trades about 0.81 of its potential returns per unit of risk. Us Government Securities is currently generating about 0.06 per unit of risk. If you would invest 1,102 in Advent Claymore Convertible on September 1, 2024 and sell it today you would earn a total of 116.00 from holding Advent Claymore Convertible or generate 10.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Us Government Securities
Performance |
| Timeline |
| Advent Claymore Conv |
| Us Government Securities |
Advent Claymore and Us Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Us Government
The main advantage of trading using opposite Advent Claymore and Us Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Us Government 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 Us Government will offset losses from the drop in Us Government'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 |
| Us Government vs. Shelton Emerging Markets | Us Government vs. Shelton Emerging Markets | Us Government vs. California Tax Free Income | Us Government vs. Shelton Funds |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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