Correlation Between Advent Claymore and Cutler Equity
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Cutler Equity 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 Cutler Equity 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 Cutler Equity, you can compare the effects of market volatilities on Advent Claymore and Cutler Equity 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 Cutler Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Cutler Equity.
Diversification Opportunities for Advent Claymore and Cutler Equity
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Advent and Cutler is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Cutler Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cutler Equity 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 Cutler Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cutler Equity has no effect on the direction of Advent Claymore i.e., Advent Claymore and Cutler Equity go up and down completely randomly.
Pair Corralation between Advent Claymore and Cutler Equity
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 1.41 times more return on investment than Cutler Equity. However, Advent Claymore is 1.41 times more volatile than Cutler Equity. It trades about 0.11 of its potential returns per unit of risk. Cutler Equity is currently generating about 0.14 per unit of risk. If you would invest 1,061 in Advent Claymore Convertible on September 3, 2024 and sell it today you would earn a total of 157.00 from holding Advent Claymore Convertible or generate 14.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Cutler Equity
Performance |
| Timeline |
| Advent Claymore Conv |
| Cutler Equity |
Advent Claymore and Cutler Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Cutler Equity
The main advantage of trading using opposite Advent Claymore and Cutler Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Cutler Equity 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 Cutler Equity will offset losses from the drop in Cutler Equity's long position.| Advent Claymore vs. Tekla Healthcare Investors | Advent Claymore vs. Tekla Life Sciences | Advent Claymore vs. Cohen Steers Reit | Advent Claymore vs. XAI Octagon Floating |
| Cutler Equity vs. Advent Claymore Convertible | Cutler Equity vs. Gabelli Convertible And | Cutler Equity vs. Fidelity Sai Convertible | Cutler Equity vs. Calamos Dynamic 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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