Correlation Between Advent Claymore and Harbor Convertible
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Harbor 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 Harbor 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 Harbor Vertible Securities, you can compare the effects of market volatilities on Advent Claymore and Harbor 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 Harbor Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Harbor Convertible.
Diversification Opportunities for Advent Claymore and Harbor Convertible
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Advent and Harbor is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Harbor Vertible Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor Vertible Secu 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 Harbor Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Vertible Secu has no effect on the direction of Advent Claymore i.e., Advent Claymore and Harbor Convertible go up and down completely randomly.
Pair Corralation between Advent Claymore and Harbor Convertible
Considering the 90-day investment horizon Advent Claymore is expected to generate 2.32 times less return on investment than Harbor Convertible. In addition to that, Advent Claymore is 2.06 times more volatile than Harbor Vertible Securities. It trades about 0.09 of its total potential returns per unit of risk. Harbor Vertible Securities is currently generating about 0.42 per unit of volatility. If you would invest 1,078 in Harbor Vertible Securities on September 2, 2024 and sell it today you would earn a total of 136.00 from holding Harbor Vertible Securities or generate 12.62% 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. Harbor Vertible Securities
Performance |
| Timeline |
| Advent Claymore Conv |
| Harbor Vertible Secu |
Advent Claymore and Harbor Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Harbor Convertible
The main advantage of trading using opposite Advent Claymore and Harbor Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Harbor 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 Harbor Convertible will offset losses from the drop in Harbor 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 |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |