Correlation Between Advent Claymore and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Eaton Vance 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 Eaton Vance 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 Eaton Vance Floating Rate, you can compare the effects of market volatilities on Advent Claymore and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Eaton Vance.
Diversification Opportunities for Advent Claymore and Eaton Vance
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Advent and Eaton is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Eaton Vance Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Floating 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 Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Floating has no effect on the direction of Advent Claymore i.e., Advent Claymore and Eaton Vance go up and down completely randomly.
Pair Corralation between Advent Claymore and Eaton Vance
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 9.96 times more return on investment than Eaton Vance. However, Advent Claymore is 9.96 times more volatile than Eaton Vance Floating Rate. It trades about 0.81 of its potential returns per unit of risk. Eaton Vance Floating Rate is currently generating about 0.1 per unit of risk. If you would invest 1,102 in Advent Claymore Convertible on September 1, 2024 and sell it today you would earn a total of 116.00 from holding Advent Claymore Convertible or generate 10.53% 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. Eaton Vance Floating Rate
Performance |
| Timeline |
| Advent Claymore Conv |
| Eaton Vance Floating |
Advent Claymore and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Eaton Vance
The main advantage of trading using opposite Advent Claymore and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance'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 |
| Eaton Vance vs. Eaton Vance Msschsts | Eaton Vance vs. Eaton Vance Municipal | Eaton Vance vs. Eaton Vance Municipal | Eaton Vance vs. Eaton Vance Municipal |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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