Correlation Between Advent Claymore and Putnam Global
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Putnam Global 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 Putnam Global 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 Putnam Global Industrials, you can compare the effects of market volatilities on Advent Claymore and Putnam Global 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 Putnam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Putnam Global.
Diversification Opportunities for Advent Claymore and Putnam Global
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Advent and Putnam is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Putnam Global Industrials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Global Industrials 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 Putnam Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Global Industrials has no effect on the direction of Advent Claymore i.e., Advent Claymore and Putnam Global go up and down completely randomly.
Pair Corralation between Advent Claymore and Putnam Global
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 0.83 times more return on investment than Putnam Global. However, Advent Claymore Convertible is 1.21 times less risky than Putnam Global. It trades about 0.14 of its potential returns per unit of risk. Putnam Global Industrials is currently generating about 0.07 per unit of risk. If you would invest 931.00 in Advent Claymore Convertible on September 14, 2024 and sell it today you would earn a total of 317.00 from holding Advent Claymore Convertible or generate 34.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Putnam Global Industrials
Performance |
| Timeline |
| Advent Claymore Conv |
| Putnam Global Industrials |
Advent Claymore and Putnam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Putnam Global
The main advantage of trading using opposite Advent Claymore and Putnam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Putnam Global 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 Putnam Global will offset losses from the drop in Putnam Global'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 |
| Putnam Global vs. Precious Metals And | Putnam Global vs. Franklin Gold Precious | Putnam Global vs. International Investors Gold | Putnam Global vs. Invesco Gold Special |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |