Correlation Between Advent Claymore and Dreyfusstandish Global
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Dreyfusstandish Global 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 Dreyfusstandish Global 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 Dreyfusstandish Global Fixed, you can compare the effects of market volatilities on Advent Claymore and Dreyfusstandish Global 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 Dreyfusstandish Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Dreyfusstandish Global.
Diversification Opportunities for Advent Claymore and Dreyfusstandish Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Advent and Dreyfusstandish is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Dreyfusstandish Global Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfusstandish Global 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 Dreyfusstandish Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfusstandish Global has no effect on the direction of Advent Claymore i.e., Advent Claymore and Dreyfusstandish Global go up and down completely randomly.
Pair Corralation between Advent Claymore and Dreyfusstandish Global
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 3.38 times more return on investment than Dreyfusstandish Global. However, Advent Claymore is 3.38 times more volatile than Dreyfusstandish Global Fixed. It trades about 0.8 of its potential returns per unit of risk. Dreyfusstandish Global Fixed is currently generating about 0.44 per unit of risk. If you would invest 1,113 in Advent Claymore Convertible on September 4, 2024 and sell it today you would earn a total of 117.00 from holding Advent Claymore Convertible or generate 10.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Dreyfusstandish Global Fixed
Performance |
| Timeline |
| Advent Claymore Conv |
| Dreyfusstandish Global |
Advent Claymore and Dreyfusstandish Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Dreyfusstandish Global
The main advantage of trading using opposite Advent Claymore and Dreyfusstandish Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Dreyfusstandish Global 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 Dreyfusstandish Global will offset losses from the drop in Dreyfusstandish Global'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 |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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