Correlation Between Advent Claymore and Nationwide Bny
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Nationwide Bny 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 Nationwide Bny 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 Nationwide Bny Mellon, you can compare the effects of market volatilities on Advent Claymore and Nationwide Bny 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 Nationwide Bny. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Nationwide Bny.
Diversification Opportunities for Advent Claymore and Nationwide Bny
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advent and Nationwide is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Nationwide Bny Mellon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Bny Mellon 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 Nationwide Bny. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Bny Mellon has no effect on the direction of Advent Claymore i.e., Advent Claymore and Nationwide Bny go up and down completely randomly.
Pair Corralation between Advent Claymore and Nationwide Bny
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 1.33 times more return on investment than Nationwide Bny. However, Advent Claymore is 1.33 times more volatile than Nationwide Bny Mellon. It trades about 0.12 of its potential returns per unit of risk. Nationwide Bny Mellon is currently generating about 0.16 per unit of risk. If you would invest 1,057 in Advent Claymore Convertible on September 1, 2024 and sell it today you would earn a total of 161.00 from holding Advent Claymore Convertible or generate 15.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Nationwide Bny Mellon
Performance |
| Timeline |
| Advent Claymore Conv |
| Nationwide Bny Mellon |
Advent Claymore and Nationwide Bny Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Nationwide Bny
The main advantage of trading using opposite Advent Claymore and Nationwide Bny positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Nationwide Bny 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 Nationwide Bny will offset losses from the drop in Nationwide Bny'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 |
| Nationwide Bny vs. Nationwide Investor Destinations | Nationwide Bny vs. Nationwide Investor Destinations | Nationwide Bny vs. Nationwide Investor Destinations | Nationwide Bny vs. Nationwide Global Equity |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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