Correlation Between Advent Claymore and Core Bond
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Core Bond 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 Core Bond 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 Core Bond Fund, you can compare the effects of market volatilities on Advent Claymore and Core Bond 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 Core Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Core Bond.
Diversification Opportunities for Advent Claymore and Core Bond
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Advent and Core is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Core Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Bond Fund 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 Core Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Bond Fund has no effect on the direction of Advent Claymore i.e., Advent Claymore and Core Bond go up and down completely randomly.
Pair Corralation between Advent Claymore and Core Bond
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 3.0 times more return on investment than Core Bond. However, Advent Claymore is 3.0 times more volatile than Core Bond Fund. It trades about 0.09 of its potential returns per unit of risk. Core Bond Fund is currently generating about 0.02 per unit of risk. If you would invest 1,061 in Advent Claymore Convertible on September 29, 2024 and sell it today you would earn a total of 119.00 from holding Advent Claymore Convertible or generate 11.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Core Bond Fund
Performance |
| Timeline |
| Advent Claymore Conv |
| Core Bond Fund |
Advent Claymore and Core Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Core Bond
The main advantage of trading using opposite Advent Claymore and Core Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Core Bond 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 Core Bond will offset losses from the drop in Core Bond's long position.| Advent Claymore vs. Calamos Global Dynamic | Advent Claymore vs. Calamos Strategic Total | Advent Claymore vs. Calamos LongShort Equity | Advent Claymore vs. Eaton Vance Tax |
| Core Bond vs. Regional Bank Fund | Core Bond vs. Regional Bank Fund | Core Bond vs. Multimanager Lifestyle Moderate | Core Bond vs. Multimanager Lifestyle Balanced |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |