Correlation Between Advent Claymore and Hartford Midcap
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Hartford Midcap 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 Hartford Midcap 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 Hartford Midcap Hls, you can compare the effects of market volatilities on Advent Claymore and Hartford Midcap 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 Hartford Midcap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Hartford Midcap.
Diversification Opportunities for Advent Claymore and Hartford Midcap
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advent and HARTFORD is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Hartford Midcap Hls in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Midcap Hls 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 Hartford Midcap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Midcap Hls has no effect on the direction of Advent Claymore i.e., Advent Claymore and Hartford Midcap go up and down completely randomly.
Pair Corralation between Advent Claymore and Hartford Midcap
Considering the 90-day investment horizon Advent Claymore is expected to generate 1.05 times less return on investment than Hartford Midcap. But when comparing it to its historical volatility, Advent Claymore Convertible is 1.66 times less risky than Hartford Midcap. It trades about 0.74 of its potential returns per unit of risk. Hartford Midcap Hls is currently generating about 0.47 of returns per unit of risk over similar time horizon. If you would invest 2,783 in Hartford Midcap Hls on September 3, 2024 and sell it today you would earn a total of 274.00 from holding Hartford Midcap Hls or generate 9.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Hartford Midcap Hls
Performance |
| Timeline |
| Advent Claymore Conv |
| Hartford Midcap Hls |
Advent Claymore and Hartford Midcap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Hartford Midcap
The main advantage of trading using opposite Advent Claymore and Hartford Midcap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Hartford Midcap 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 Hartford Midcap will offset losses from the drop in Hartford Midcap's long position.| Advent Claymore vs. Tekla Healthcare Investors | Advent Claymore vs. Tekla Life Sciences | Advent Claymore vs. Cohen Steers Reit | Advent Claymore vs. XAI Octagon Floating |
| Hartford Midcap vs. Putnam Convertible Incm Gwth | Hartford Midcap vs. Gabelli Convertible And | Hartford Midcap vs. Rationalpier 88 Convertible | Hartford Midcap 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |