Correlation Between Advent Claymore and Calvert Us
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Calvert Us 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 Calvert Us 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 Calvert Large Cap, you can compare the effects of market volatilities on Advent Claymore and Calvert Us 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 Calvert Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Calvert Us.
Diversification Opportunities for Advent Claymore and Calvert Us
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advent and Calvert is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Calvert Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Large Cap 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 Calvert Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Large Cap has no effect on the direction of Advent Claymore i.e., Advent Claymore and Calvert Us go up and down completely randomly.
Pair Corralation between Advent Claymore and Calvert Us
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 0.67 times more return on investment than Calvert Us. However, Advent Claymore Convertible is 1.5 times less risky than Calvert Us. It trades about 0.81 of its potential returns per unit of risk. Calvert Large Cap is currently generating about 0.36 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 Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Calvert Large Cap
Performance |
| Timeline |
| Advent Claymore Conv |
| Calvert Large Cap |
Advent Claymore and Calvert Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Calvert Us
The main advantage of trading using opposite Advent Claymore and Calvert Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Calvert Us 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 Calvert Us will offset losses from the drop in Calvert Us' 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 |
| Calvert Us vs. Absolute Convertible Arbitrage | Calvert Us vs. Advent Claymore Convertible | Calvert Us vs. Fidelity Sai Convertible | Calvert Us vs. Rationalpier 88 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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