Correlation Between Advent Claymore and Nationwide Highmark
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Nationwide Highmark 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 Highmark 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 Highmark Bond, you can compare the effects of market volatilities on Advent Claymore and Nationwide Highmark 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 Highmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Nationwide Highmark.
Diversification Opportunities for Advent Claymore and Nationwide Highmark
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Advent and Nationwide is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Nationwide Highmark Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Highmark Bond 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 Highmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Highmark Bond has no effect on the direction of Advent Claymore i.e., Advent Claymore and Nationwide Highmark go up and down completely randomly.
Pair Corralation between Advent Claymore and Nationwide Highmark
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 2.48 times more return on investment than Nationwide Highmark. However, Advent Claymore is 2.48 times more volatile than Nationwide Highmark Bond. It trades about 0.09 of its potential returns per unit of risk. Nationwide Highmark Bond is currently generating about 0.05 per unit of risk. If you would invest 926.00 in Advent Claymore Convertible on September 12, 2024 and sell it today you would earn a total of 310.00 from holding Advent Claymore Convertible or generate 33.48% 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. Nationwide Highmark Bond
Performance |
| Timeline |
| Advent Claymore Conv |
| Nationwide Highmark Bond |
Advent Claymore and Nationwide Highmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Nationwide Highmark
The main advantage of trading using opposite Advent Claymore and Nationwide Highmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Nationwide Highmark 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 Highmark will offset losses from the drop in Nationwide Highmark'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 Highmark vs. SCOR PK | Nationwide Highmark vs. Morningstar Unconstrained Allocation | Nationwide Highmark vs. Via Renewables | Nationwide Highmark vs. Bondbloxx ETF Trust |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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