Correlation Between Advent Claymore and Gabelli Convertible
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Gabelli Convertible 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 Gabelli Convertible 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 Gabelli Convertible And, you can compare the effects of market volatilities on Advent Claymore and Gabelli Convertible 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 Gabelli Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Gabelli Convertible.
Diversification Opportunities for Advent Claymore and Gabelli Convertible
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Advent and Gabelli is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Gabelli Convertible And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Convertible And 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 Gabelli Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Convertible And has no effect on the direction of Advent Claymore i.e., Advent Claymore and Gabelli Convertible go up and down completely randomly.
Pair Corralation between Advent Claymore and Gabelli Convertible
Considering the 90-day investment horizon Advent Claymore is expected to generate 1.22 times less return on investment than Gabelli Convertible. But when comparing it to its historical volatility, Advent Claymore Convertible is 1.56 times less risky than Gabelli Convertible. It trades about 0.41 of its potential returns per unit of risk. Gabelli Convertible And is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 369.00 in Gabelli Convertible And on August 24, 2024 and sell it today you would earn a total of 26.00 from holding Gabelli Convertible And or generate 7.05% 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. Gabelli Convertible And
Performance |
| Timeline |
| Advent Claymore Conv |
| Gabelli Convertible And |
Advent Claymore and Gabelli Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Gabelli Convertible
The main advantage of trading using opposite Advent Claymore and Gabelli Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Gabelli Convertible 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 Gabelli Convertible will offset losses from the drop in Gabelli Convertible'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 |
| Gabelli Convertible vs. Tekla Healthcare Investors | Gabelli Convertible vs. Blackrock Enhanced Capital | Gabelli Convertible vs. Tekla Life Sciences | Gabelli Convertible vs. Nuveen New York |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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