Correlation Between Advent Claymore and Calamos International
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Calamos International 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 Calamos International 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 Calamos International Growth, you can compare the effects of market volatilities on Advent Claymore and Calamos International 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 Calamos International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Calamos International.
Diversification Opportunities for Advent Claymore and Calamos International
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Advent and Calamos is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Calamos International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos International 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 Calamos International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos International has no effect on the direction of Advent Claymore i.e., Advent Claymore and Calamos International go up and down completely randomly.
Pair Corralation between Advent Claymore and Calamos International
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 0.71 times more return on investment than Calamos International. However, Advent Claymore Convertible is 1.4 times less risky than Calamos International. It trades about 0.58 of its potential returns per unit of risk. Calamos International Growth is currently generating about 0.01 per unit of risk. If you would invest 1,163 in Advent Claymore Convertible on September 12, 2024 and sell it today you would earn a total of 87.00 from holding Advent Claymore Convertible or generate 7.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Calamos International Growth
Performance |
| Timeline |
| Advent Claymore Conv |
| Calamos International |
Advent Claymore and Calamos International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Calamos International
The main advantage of trading using opposite Advent Claymore and Calamos International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Calamos International 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 Calamos International will offset losses from the drop in Calamos International'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 |
| Calamos International vs. Lord Abbett Convertible | Calamos International vs. Advent Claymore Convertible | Calamos International vs. Rationalpier 88 Convertible | Calamos International vs. Virtus 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |