Correlation Between Advent Claymore and Blackrock Emerging
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Blackrock Emerging 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 Blackrock Emerging 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 Blackrock Emerging Markets, you can compare the effects of market volatilities on Advent Claymore and Blackrock Emerging 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 Blackrock Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Blackrock Emerging.
Diversification Opportunities for Advent Claymore and Blackrock Emerging
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Advent and Blackrock is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Blackrock Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Emerging 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 Blackrock Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Emerging has no effect on the direction of Advent Claymore i.e., Advent Claymore and Blackrock Emerging go up and down completely randomly.
Pair Corralation between Advent Claymore and Blackrock Emerging
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 0.6 times more return on investment than Blackrock Emerging. However, Advent Claymore Convertible is 1.65 times less risky than Blackrock Emerging. It trades about 0.19 of its potential returns per unit of risk. Blackrock Emerging Markets is currently generating about -0.16 per unit of risk. If you would invest 1,151 in Advent Claymore Convertible on August 29, 2024 and sell it today you would earn a total of 55.00 from holding Advent Claymore Convertible or generate 4.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Blackrock Emerging Markets
Performance |
| Timeline |
| Advent Claymore Conv |
| Blackrock Emerging |
Advent Claymore and Blackrock Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Blackrock Emerging
The main advantage of trading using opposite Advent Claymore and Blackrock Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Blackrock Emerging 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 Blackrock Emerging will offset losses from the drop in Blackrock Emerging's long position.| Advent Claymore vs. Gabelli Global Small | Advent Claymore vs. MFS Investment Grade | Advent Claymore vs. Eaton Vance National | Advent Claymore vs. GAMCO Natural Resources |
| Blackrock Emerging vs. Virtus Convertible | Blackrock Emerging vs. Lord Abbett Convertible | Blackrock Emerging vs. Putnam Convertible Incm Gwth | Blackrock Emerging vs. Advent Claymore 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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