Correlation Between Advent Claymore and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Ashmore Emerging 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 Ashmore Emerging 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 Ashmore Emerging Markets, you can compare the effects of market volatilities on Advent Claymore and Ashmore Emerging 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 Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Ashmore Emerging.
Diversification Opportunities for Advent Claymore and Ashmore Emerging
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Advent and Ashmore is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Ashmore Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashmore Emerging Markets 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 Ashmore Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashmore Emerging Markets has no effect on the direction of Advent Claymore i.e., Advent Claymore and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Advent Claymore and Ashmore Emerging
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 0.8 times more return on investment than Ashmore Emerging. However, Advent Claymore Convertible is 1.25 times less risky than Ashmore Emerging. It trades about 0.12 of its potential returns per unit of risk. Ashmore Emerging Markets is currently generating about 0.03 per unit of risk. If you would invest 1,057 in Advent Claymore Convertible on September 1, 2024 and sell it today you would earn a total of 161.00 from holding Advent Claymore Convertible or generate 15.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Ashmore Emerging Markets
Performance |
| Timeline |
| Advent Claymore Conv |
| Ashmore Emerging Markets |
Advent Claymore and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Ashmore Emerging
The main advantage of trading using opposite Advent Claymore and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Ashmore Emerging 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 Ashmore Emerging will offset losses from the drop in Ashmore Emerging'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 |
| Ashmore Emerging vs. Mesirow Financial Small | Ashmore Emerging vs. John Hancock Financial | Ashmore Emerging vs. Angel Oak Financial | Ashmore Emerging vs. Davis Financial Fund |
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 CEOs Directory module to screen CEOs from public companies around the world.
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