Correlation Between Advent Claymore and Kinetics Internet
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Kinetics Internet 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 Kinetics Internet 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 Kinetics Internet Fund, you can compare the effects of market volatilities on Advent Claymore and Kinetics Internet 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 Kinetics Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Kinetics Internet.
Diversification Opportunities for Advent Claymore and Kinetics Internet
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Advent and Kinetics is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Kinetics Internet Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Internet 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 Kinetics Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetics Internet has no effect on the direction of Advent Claymore i.e., Advent Claymore and Kinetics Internet go up and down completely randomly.
Pair Corralation between Advent Claymore and Kinetics Internet
Considering the 90-day investment horizon Advent Claymore is expected to generate 2.07 times less return on investment than Kinetics Internet. But when comparing it to its historical volatility, Advent Claymore Convertible is 1.54 times less risky than Kinetics Internet. It trades about 0.09 of its potential returns per unit of risk. Kinetics Internet Fund is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 4,226 in Kinetics Internet Fund on September 14, 2024 and sell it today you would earn a total of 5,774 from holding Kinetics Internet Fund or generate 136.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Kinetics Internet Fund
Performance |
| Timeline |
| Advent Claymore Conv |
| Kinetics Internet |
Advent Claymore and Kinetics Internet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Kinetics Internet
The main advantage of trading using opposite Advent Claymore and Kinetics Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Kinetics Internet 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 Kinetics Internet will offset losses from the drop in Kinetics Internet'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 |
| Kinetics Internet vs. Advent Claymore Convertible | Kinetics Internet vs. Fidelity Sai Convertible | Kinetics Internet vs. Putnam Convertible Incm Gwth | Kinetics Internet vs. Lord Abbett 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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