Correlation Between Advent Claymore and Columbia Acorn
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Columbia Acorn 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 Columbia Acorn 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 Columbia Acorn Usa, you can compare the effects of market volatilities on Advent Claymore and Columbia Acorn 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 Columbia Acorn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Columbia Acorn.
Diversification Opportunities for Advent Claymore and Columbia Acorn
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Advent and Columbia is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Columbia Acorn Usa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Acorn Usa 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 Columbia Acorn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Acorn Usa has no effect on the direction of Advent Claymore i.e., Advent Claymore and Columbia Acorn go up and down completely randomly.
Pair Corralation between Advent Claymore and Columbia Acorn
If you would invest 931.00 in Advent Claymore Convertible on September 14, 2024 and sell it today you would earn a total of 317.00 from holding Advent Claymore Convertible or generate 34.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Columbia Acorn Usa
Performance |
| Timeline |
| Advent Claymore Conv |
| Columbia Acorn Usa |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Advent Claymore and Columbia Acorn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Columbia Acorn
The main advantage of trading using opposite Advent Claymore and Columbia Acorn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Columbia Acorn 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 Columbia Acorn will offset losses from the drop in Columbia Acorn'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 |
| Columbia Acorn vs. Century Small Cap | Columbia Acorn vs. Volumetric Fund Volumetric | Columbia Acorn vs. T Rowe Price | Columbia Acorn 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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