Correlation Between Advent Claymore and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Lord Abbett 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 Lord Abbett 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 Lord Abbett Vertible, you can compare the effects of market volatilities on Advent Claymore and Lord Abbett 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 Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Lord Abbett.
Diversification Opportunities for Advent Claymore and Lord Abbett
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advent and LORD is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Lord Abbett Vertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Vertible 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 Lord Abbett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lord Abbett Vertible has no effect on the direction of Advent Claymore i.e., Advent Claymore and Lord Abbett go up and down completely randomly.
Pair Corralation between Advent Claymore and Lord Abbett
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 1.68 times more return on investment than Lord Abbett. However, Advent Claymore is 1.68 times more volatile than Lord Abbett Vertible. It trades about 0.11 of its potential returns per unit of risk. Lord Abbett Vertible is currently generating about 0.15 per unit of risk. If you would invest 998.00 in Advent Claymore Convertible on August 28, 2024 and sell it today you would earn a total of 202.00 from holding Advent Claymore Convertible or generate 20.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.52% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Lord Abbett Vertible
Performance |
| Timeline |
| Advent Claymore Conv |
| Lord Abbett Vertible |
Advent Claymore and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Lord Abbett
The main advantage of trading using opposite Advent Claymore and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Lord Abbett 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 Lord Abbett will offset losses from the drop in Lord Abbett'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 |
| Lord Abbett vs. Gamco Global Telecommunications | Lord Abbett vs. Dws Government Money | Lord Abbett vs. T Rowe Price | Lord Abbett vs. Franklin High Yield |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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