Correlation Between Advent Claymore and Jpmorgan Mid
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Jpmorgan Mid 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 Jpmorgan Mid 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 Jpmorgan Mid Cap, you can compare the effects of market volatilities on Advent Claymore and Jpmorgan Mid 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 Jpmorgan Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Jpmorgan Mid.
Diversification Opportunities for Advent Claymore and Jpmorgan Mid
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Advent and Jpmorgan is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Jpmorgan Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Mid Cap 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 Jpmorgan Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Mid Cap has no effect on the direction of Advent Claymore i.e., Advent Claymore and Jpmorgan Mid go up and down completely randomly.
Pair Corralation between Advent Claymore and Jpmorgan Mid
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 0.75 times more return on investment than Jpmorgan Mid. However, Advent Claymore Convertible is 1.34 times less risky than Jpmorgan Mid. It trades about -0.03 of its potential returns per unit of risk. Jpmorgan Mid Cap is currently generating about -0.19 per unit of risk. If you would invest 1,205 in Advent Claymore Convertible on November 27, 2024 and sell it today you would lose (4.00) from holding Advent Claymore Convertible or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Jpmorgan Mid Cap
Performance |
| Timeline |
| Advent Claymore Conv |
| Jpmorgan Mid Cap |
Advent Claymore and Jpmorgan Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Jpmorgan Mid
The main advantage of trading using opposite Advent Claymore and Jpmorgan Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Jpmorgan Mid 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 Jpmorgan Mid will offset losses from the drop in Jpmorgan Mid'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 |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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