Correlation Between Advent Claymore and Pgim Jennison
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Pgim Jennison 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 Pgim Jennison 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 Pgim Jennison Rising, you can compare the effects of market volatilities on Advent Claymore and Pgim Jennison 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 Pgim Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Pgim Jennison.
Diversification Opportunities for Advent Claymore and Pgim Jennison
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Advent and Pgim is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Pgim Jennison Rising in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim Jennison Rising 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 Pgim Jennison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pgim Jennison Rising has no effect on the direction of Advent Claymore i.e., Advent Claymore and Pgim Jennison go up and down completely randomly.
Pair Corralation between Advent Claymore and Pgim Jennison
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 0.59 times more return on investment than Pgim Jennison. However, Advent Claymore Convertible is 1.69 times less risky than Pgim Jennison. It trades about 0.11 of its potential returns per unit of risk. Pgim Jennison Rising is currently generating about 0.01 per unit of risk. If you would invest 1,091 in Advent Claymore Convertible on November 3, 2024 and sell it today you would earn a total of 130.00 from holding Advent Claymore Convertible or generate 11.92% 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. Pgim Jennison Rising
Performance |
| Timeline |
| Advent Claymore Conv |
| Pgim Jennison Rising |
Advent Claymore and Pgim Jennison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Pgim Jennison
The main advantage of trading using opposite Advent Claymore and Pgim Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Pgim Jennison 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 Pgim Jennison will offset losses from the drop in Pgim Jennison'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 |
| Pgim Jennison vs. Columbia Large Cap | Pgim Jennison vs. Columbia Capital Allocation | Pgim Jennison vs. HUMANA INC | Pgim Jennison vs. Aquagold International |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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