Correlation Between Advent Claymore and Nuveen Real
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Nuveen Real 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 Nuveen Real 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 Nuveen Real Estate, you can compare the effects of market volatilities on Advent Claymore and Nuveen Real 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 Nuveen Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Nuveen Real.
Diversification Opportunities for Advent Claymore and Nuveen Real
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Advent and Nuveen is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Nuveen Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Real Estate 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 Nuveen Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Real Estate has no effect on the direction of Advent Claymore i.e., Advent Claymore and Nuveen Real go up and down completely randomly.
Pair Corralation between Advent Claymore and Nuveen Real
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 0.48 times more return on investment than Nuveen Real. However, Advent Claymore Convertible is 2.08 times less risky than Nuveen Real. It trades about 0.48 of its potential returns per unit of risk. Nuveen Real Estate is currently generating about 0.17 per unit of risk. If you would invest 1,115 in Advent Claymore Convertible on August 25, 2024 and sell it today you would earn a total of 72.00 from holding Advent Claymore Convertible or generate 6.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Nuveen Real Estate
Performance |
| Timeline |
| Advent Claymore Conv |
| Nuveen Real Estate |
Advent Claymore and Nuveen Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Nuveen Real
The main advantage of trading using opposite Advent Claymore and Nuveen Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Nuveen Real 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 Nuveen Real will offset losses from the drop in Nuveen Real's long position.| Advent Claymore vs. Calamos Convertible Opportunities | Advent Claymore vs. Calamos Global Dynamic | Advent Claymore vs. Calamos Strategic Total | Advent Claymore vs. Calamos LongShort Equity |
| Nuveen Real vs. Nuveen Global High | Nuveen Real vs. Advent Claymore Convertible | Nuveen Real vs. Blackstone Gso Strategic | Nuveen Real vs. Neuberger Berman High |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| 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 |