Correlation Between Advent Claymore and First Eagle
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and First Eagle 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 First Eagle 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 First Eagle Gold, you can compare the effects of market volatilities on Advent Claymore and First Eagle 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 First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and First Eagle.
Diversification Opportunities for Advent Claymore and First Eagle
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Advent and First is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and First Eagle Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Gold 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 First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Gold has no effect on the direction of Advent Claymore i.e., Advent Claymore and First Eagle go up and down completely randomly.
Pair Corralation between Advent Claymore and First Eagle
If you would invest 1,105 in Advent Claymore Convertible on September 2, 2024 and sell it today you would earn a total of 113.00 from holding Advent Claymore Convertible or generate 10.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Advent Claymore Convertible vs. First Eagle Gold
Performance |
| Timeline |
| Advent Claymore Conv |
| First Eagle Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Advent Claymore and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and First Eagle
The main advantage of trading using opposite Advent Claymore and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, First Eagle 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 First Eagle will offset losses from the drop in First Eagle'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 |
| First Eagle vs. Dodge Cox Stock | First Eagle vs. M Large Cap | First Eagle vs. Legg Mason Bw | First Eagle vs. Tax Managed Large Cap |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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