Correlation Between Advent Claymore and Clearbridge Select
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Clearbridge Select 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 Clearbridge Select 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 Clearbridge Select Fund, you can compare the effects of market volatilities on Advent Claymore and Clearbridge Select 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 Clearbridge Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Clearbridge Select.
Diversification Opportunities for Advent Claymore and Clearbridge Select
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advent and Clearbridge is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Clearbridge Select Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Select 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 Clearbridge Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Select has no effect on the direction of Advent Claymore i.e., Advent Claymore and Clearbridge Select go up and down completely randomly.
Pair Corralation between Advent Claymore and Clearbridge Select
Considering the 90-day investment horizon Advent Claymore is expected to generate 1.1 times less return on investment than Clearbridge Select. But when comparing it to its historical volatility, Advent Claymore Convertible is 1.85 times less risky than Clearbridge Select. It trades about 0.74 of its potential returns per unit of risk. Clearbridge Select Fund is currently generating about 0.44 of returns per unit of risk over similar time horizon. If you would invest 5,348 in Clearbridge Select Fund on September 3, 2024 and sell it today you would earn a total of 550.00 from holding Clearbridge Select Fund or generate 10.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Clearbridge Select Fund
Performance |
| Timeline |
| Advent Claymore Conv |
| Clearbridge Select |
Advent Claymore and Clearbridge Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Clearbridge Select
The main advantage of trading using opposite Advent Claymore and Clearbridge Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Clearbridge Select 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 Clearbridge Select will offset losses from the drop in Clearbridge Select's long position.| Advent Claymore vs. Tekla Healthcare Investors | Advent Claymore vs. Tekla Life Sciences | Advent Claymore vs. Cohen Steers Reit | Advent Claymore vs. XAI Octagon Floating |
| Clearbridge Select vs. Advent Claymore Convertible | Clearbridge Select vs. Gabelli Convertible And | Clearbridge Select vs. Calamos Dynamic Convertible | Clearbridge Select vs. Allianzgi Convertible Income |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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