Correlation Between Advent Claymore and Franklin Efolio
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Franklin Efolio 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 Franklin Efolio 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 Franklin Efolio Allocation, you can compare the effects of market volatilities on Advent Claymore and Franklin Efolio 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 Franklin Efolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Franklin Efolio.
Diversification Opportunities for Advent Claymore and Franklin Efolio
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Advent and Franklin is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Franklin Efolio Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Efolio Allo 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 Franklin Efolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Efolio Allo has no effect on the direction of Advent Claymore i.e., Advent Claymore and Franklin Efolio go up and down completely randomly.
Pair Corralation between Advent Claymore and Franklin Efolio
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 1.08 times more return on investment than Franklin Efolio. However, Advent Claymore is 1.08 times more volatile than Franklin Efolio Allocation. It trades about 0.14 of its potential returns per unit of risk. Franklin Efolio Allocation is currently generating about 0.07 per unit of risk. If you would invest 931.00 in Advent Claymore Convertible on September 14, 2024 and sell it today you would earn a total of 317.00 from holding Advent Claymore Convertible or generate 34.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Franklin Efolio Allocation
Performance |
| Timeline |
| Advent Claymore Conv |
| Franklin Efolio Allo |
Advent Claymore and Franklin Efolio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Franklin Efolio
The main advantage of trading using opposite Advent Claymore and Franklin Efolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Franklin Efolio 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 Franklin Efolio will offset losses from the drop in Franklin Efolio'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 |
| Franklin Efolio vs. Pace Smallmedium Growth | Franklin Efolio vs. Qs Moderate Growth | Franklin Efolio vs. Rational Defensive Growth | Franklin Efolio vs. Qs Defensive Growth |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |