Correlation Between Advent Claymore and Voya Midcap
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Voya 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 Voya 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 Voya Midcap Opportunities, you can compare the effects of market volatilities on Advent Claymore and Voya 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 Voya Midcap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Voya Midcap.
Diversification Opportunities for Advent Claymore and Voya Midcap
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Advent and Voya is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Voya Midcap Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Midcap Opportunities 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 Voya Midcap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Midcap Opportunities has no effect on the direction of Advent Claymore i.e., Advent Claymore and Voya Midcap go up and down completely randomly.
Pair Corralation between Advent Claymore and Voya Midcap
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 0.87 times more return on investment than Voya Midcap. However, Advent Claymore Convertible is 1.15 times less risky than Voya Midcap. It trades about 0.14 of its potential returns per unit of risk. Voya Midcap Opportunities is currently generating about 0.09 per unit of risk. If you would invest 932.00 in Advent Claymore Convertible on September 12, 2024 and sell it today you would earn a total of 304.00 from holding Advent Claymore Convertible or generate 32.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Voya Midcap Opportunities
Performance |
| Timeline |
| Advent Claymore Conv |
| Voya Midcap Opportunities |
Advent Claymore and Voya Midcap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Voya Midcap
The main advantage of trading using opposite Advent Claymore and Voya Midcap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Voya 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 Voya Midcap will offset losses from the drop in Voya Midcap'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 |
| Voya Midcap vs. Advent Claymore Convertible | Voya Midcap vs. Absolute Convertible Arbitrage | Voya Midcap vs. Rationalpier 88 Convertible | Voya Midcap vs. Virtus 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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