Correlation Between Advent Claymore and Delaware Healthcare
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Delaware Healthcare 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 Delaware Healthcare 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 Delaware Healthcare Fund, you can compare the effects of market volatilities on Advent Claymore and Delaware Healthcare 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 Delaware Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Delaware Healthcare.
Diversification Opportunities for Advent Claymore and Delaware Healthcare
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Advent and Delaware is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Delaware Healthcare Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delaware Healthcare 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 Delaware Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delaware Healthcare has no effect on the direction of Advent Claymore i.e., Advent Claymore and Delaware Healthcare go up and down completely randomly.
Pair Corralation between Advent Claymore and Delaware Healthcare
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 1.03 times more return on investment than Delaware Healthcare. However, Advent Claymore is 1.03 times more volatile than Delaware Healthcare Fund. It trades about 0.06 of its potential returns per unit of risk. Delaware Healthcare Fund is currently generating about 0.0 per unit of risk. If you would invest 873.00 in Advent Claymore Convertible on September 29, 2024 and sell it today you would earn a total of 307.00 from holding Advent Claymore Convertible or generate 35.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Delaware Healthcare Fund
Performance |
| Timeline |
| Advent Claymore Conv |
| Delaware Healthcare |
Advent Claymore and Delaware Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Delaware Healthcare
The main advantage of trading using opposite Advent Claymore and Delaware Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Delaware Healthcare 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 Delaware Healthcare will offset losses from the drop in Delaware Healthcare's long position.| Advent Claymore vs. Calamos Global Dynamic | Advent Claymore vs. Calamos Strategic Total | Advent Claymore vs. Calamos LongShort Equity | Advent Claymore vs. Eaton Vance Tax |
| Delaware Healthcare vs. Optimum Small Mid Cap | Delaware Healthcare vs. Optimum Small Mid Cap | Delaware Healthcare vs. Ivy Apollo Multi Asset | Delaware Healthcare vs. Optimum Fixed Income |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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