Correlation Between Advent Claymore and Dfa International
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Dfa 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 Dfa 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 Dfa International Social, you can compare the effects of market volatilities on Advent Claymore and Dfa 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 Dfa International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Dfa International.
Diversification Opportunities for Advent Claymore and Dfa International
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Advent and Dfa is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Dfa International Social in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dfa International Social 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 Dfa International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dfa International Social has no effect on the direction of Advent Claymore i.e., Advent Claymore and Dfa International go up and down completely randomly.
Pair Corralation between Advent Claymore and Dfa International
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 1.07 times more return on investment than Dfa International. However, Advent Claymore is 1.07 times more volatile than Dfa International Social. It trades about 0.15 of its potential returns per unit of risk. Dfa International Social is currently generating about 0.07 per unit of risk. If you would invest 888.00 in Advent Claymore Convertible on September 4, 2024 and sell it today you would earn a total of 342.00 from holding Advent Claymore Convertible or generate 38.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Dfa International Social
Performance |
| Timeline |
| Advent Claymore Conv |
| Dfa International Social |
Advent Claymore and Dfa International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Dfa International
The main advantage of trading using opposite Advent Claymore and Dfa International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Dfa 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 Dfa International will offset losses from the drop in Dfa 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 |
| Dfa International vs. Dreyfus Government Cash | Dfa International vs. Short Term Government Fund | Dfa International vs. Ab Government Exchange | Dfa International vs. Us Government Securities |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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