Correlation Between Advent Claymore and Mainstay Convertible
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Mainstay Convertible 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 Mainstay Convertible 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 Mainstay Vertible Fund, you can compare the effects of market volatilities on Advent Claymore and Mainstay Convertible 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 Mainstay Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Mainstay Convertible.
Diversification Opportunities for Advent Claymore and Mainstay Convertible
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Advent and Mainstay is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Mainstay Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Convertible 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 Mainstay Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Convertible has no effect on the direction of Advent Claymore i.e., Advent Claymore and Mainstay Convertible go up and down completely randomly.
Pair Corralation between Advent Claymore and Mainstay Convertible
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 1.99 times more return on investment than Mainstay Convertible. However, Advent Claymore is 1.99 times more volatile than Mainstay Vertible Fund. It trades about 0.08 of its potential returns per unit of risk. Mainstay Vertible Fund is currently generating about 0.07 per unit of risk. If you would invest 926.00 in Advent Claymore Convertible on August 28, 2024 and sell it today you would earn a total of 274.00 from holding Advent Claymore Convertible or generate 29.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Mainstay Vertible Fund
Performance |
| Timeline |
| Advent Claymore Conv |
| Mainstay Convertible |
Advent Claymore and Mainstay Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Mainstay Convertible
The main advantage of trading using opposite Advent Claymore and Mainstay Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Mainstay Convertible 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 Mainstay Convertible will offset losses from the drop in Mainstay Convertible'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 |
| Mainstay Convertible vs. Mainstay High Yield | Mainstay Convertible vs. Mainstay Map Equity | Mainstay Convertible vs. Aquagold International | Mainstay Convertible vs. Morningstar Unconstrained Allocation |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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