Correlation Between Advent Claymore and Massmutual Premier
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Massmutual Premier 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 Massmutual Premier 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 Massmutual Premier Balanced, you can compare the effects of market volatilities on Advent Claymore and Massmutual Premier 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 Massmutual Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Massmutual Premier.
Diversification Opportunities for Advent Claymore and Massmutual Premier
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advent and Massmutual is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Massmutual Premier Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Premier 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 Massmutual Premier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Premier has no effect on the direction of Advent Claymore i.e., Advent Claymore and Massmutual Premier go up and down completely randomly.
Pair Corralation between Advent Claymore and Massmutual Premier
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 2.1 times more return on investment than Massmutual Premier. However, Advent Claymore is 2.1 times more volatile than Massmutual Premier Balanced. It trades about 0.09 of its potential returns per unit of risk. Massmutual Premier Balanced is currently generating about 0.18 per unit of risk. If you would invest 1,160 in Advent Claymore Convertible on September 2, 2024 and sell it today you would earn a total of 58.00 from holding Advent Claymore Convertible or generate 5.0% 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. Massmutual Premier Balanced
Performance |
| Timeline |
| Advent Claymore Conv |
| Massmutual Premier |
Advent Claymore and Massmutual Premier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Massmutual Premier
The main advantage of trading using opposite Advent Claymore and Massmutual Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Massmutual Premier 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 Massmutual Premier will offset losses from the drop in Massmutual Premier'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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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