Correlation Between Advent Claymore and Jpmorgan Smartretirement
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Jpmorgan Smartretirement 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 Smartretirement 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 Smartretirement 2050, you can compare the effects of market volatilities on Advent Claymore and Jpmorgan Smartretirement 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 Smartretirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Jpmorgan Smartretirement.
Diversification Opportunities for Advent Claymore and Jpmorgan Smartretirement
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Advent and Jpmorgan is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Jpmorgan Smartretirement 2050 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Smartretirement 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 Smartretirement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Smartretirement has no effect on the direction of Advent Claymore i.e., Advent Claymore and Jpmorgan Smartretirement go up and down completely randomly.
Pair Corralation between Advent Claymore and Jpmorgan Smartretirement
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 1.43 times more return on investment than Jpmorgan Smartretirement. However, Advent Claymore is 1.43 times more volatile than Jpmorgan Smartretirement 2050. It trades about 0.08 of its potential returns per unit of risk. Jpmorgan Smartretirement 2050 is currently generating about 0.1 per unit of risk. If you would invest 832.00 in Advent Claymore Convertible on September 13, 2024 and sell it today you would earn a total of 418.00 from holding Advent Claymore Convertible or generate 50.24% 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. Jpmorgan Smartretirement 2050
Performance |
| Timeline |
| Advent Claymore Conv |
| Jpmorgan Smartretirement |
Advent Claymore and Jpmorgan Smartretirement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Jpmorgan Smartretirement
The main advantage of trading using opposite Advent Claymore and Jpmorgan Smartretirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Jpmorgan Smartretirement 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 Smartretirement will offset losses from the drop in Jpmorgan Smartretirement'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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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