Correlation Between Advent Claymore and Morgan Stanley
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Morgan Stanley 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 Morgan Stanley 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 Morgan Stanley European, you can compare the effects of market volatilities on Advent Claymore and Morgan Stanley 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 Morgan Stanley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Morgan Stanley.
Diversification Opportunities for Advent Claymore and Morgan Stanley
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Advent and Morgan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Morgan Stanley European in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morgan Stanley European 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 Morgan Stanley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Morgan Stanley European has no effect on the direction of Advent Claymore i.e., Advent Claymore and Morgan Stanley go up and down completely randomly.
Pair Corralation between Advent Claymore and Morgan Stanley
If you would invest 932.00 in Advent Claymore Convertible on September 12, 2024 and sell it today you would earn a total of 304.00 from holding Advent Claymore Convertible or generate 32.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Morgan Stanley European
Performance |
| Timeline |
| Advent Claymore Conv |
| Morgan Stanley European |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Advent Claymore and Morgan Stanley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Morgan Stanley
The main advantage of trading using opposite Advent Claymore and Morgan Stanley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Morgan Stanley 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 Morgan Stanley will offset losses from the drop in Morgan Stanley'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 |
| Morgan Stanley vs. Allianzgi Convertible Income | Morgan Stanley vs. Virtus Convertible | Morgan Stanley vs. Calamos Dynamic Convertible | Morgan Stanley vs. Advent Claymore Convertible |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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