Correlation Between Advent Claymore and Lkcm Fixed
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Lkcm Fixed 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 Lkcm Fixed 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 Lkcm Fixed Income, you can compare the effects of market volatilities on Advent Claymore and Lkcm Fixed 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 Lkcm Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Lkcm Fixed.
Diversification Opportunities for Advent Claymore and Lkcm Fixed
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Advent and Lkcm is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Lkcm Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lkcm Fixed Income 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 Lkcm Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lkcm Fixed Income has no effect on the direction of Advent Claymore i.e., Advent Claymore and Lkcm Fixed go up and down completely randomly.
Pair Corralation between Advent Claymore and Lkcm Fixed
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 4.59 times more return on investment than Lkcm Fixed. However, Advent Claymore is 4.59 times more volatile than Lkcm Fixed Income. It trades about 0.14 of its potential returns per unit of risk. Lkcm Fixed Income is currently generating about 0.09 per unit of risk. If you would invest 931.00 in Advent Claymore Convertible on September 14, 2024 and sell it today you would earn a total of 317.00 from holding Advent Claymore Convertible or generate 34.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Lkcm Fixed Income
Performance |
| Timeline |
| Advent Claymore Conv |
| Lkcm Fixed Income |
Advent Claymore and Lkcm Fixed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Lkcm Fixed
The main advantage of trading using opposite Advent Claymore and Lkcm Fixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Lkcm Fixed 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 Lkcm Fixed will offset losses from the drop in Lkcm Fixed'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 |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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