Correlation Between Advent Claymore and The Hartford
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and The Hartford 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 The Hartford 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 The Hartford International, you can compare the effects of market volatilities on Advent Claymore and The Hartford 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 The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and The Hartford.
Diversification Opportunities for Advent Claymore and The Hartford
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Advent and The is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and The Hartford International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Interna 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 The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Interna has no effect on the direction of Advent Claymore i.e., Advent Claymore and The Hartford go up and down completely randomly.
Pair Corralation between Advent Claymore and The Hartford
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 0.78 times more return on investment than The Hartford. However, Advent Claymore Convertible is 1.28 times less risky than The Hartford. It trades about 0.78 of its potential returns per unit of risk. The Hartford International is currently generating about -0.17 per unit of risk. If you would invest 1,104 in Advent Claymore Convertible on August 31, 2024 and sell it today you would earn a total of 116.00 from holding Advent Claymore Convertible or generate 10.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. The Hartford International
Performance |
| Timeline |
| Advent Claymore Conv |
| Hartford Interna |
Advent Claymore and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and The Hartford
The main advantage of trading using opposite Advent Claymore and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| Advent Claymore vs. MFS Investment Grade | Advent Claymore vs. Eaton Vance Municipal | Advent Claymore vs. DTF Tax Free | Advent Claymore vs. HUMANA INC |
| The Hartford vs. Fidelity Sai Convertible | The Hartford vs. Advent Claymore Convertible | The Hartford vs. Virtus Convertible | The Hartford vs. Putnam Convertible Incm Gwth |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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