Correlation Between Advent Claymore and Invesco Peak
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Invesco Peak 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 Invesco Peak 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 Invesco Peak Retirement, you can compare the effects of market volatilities on Advent Claymore and Invesco Peak 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 Invesco Peak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Invesco Peak.
Diversification Opportunities for Advent Claymore and Invesco Peak
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Advent and Invesco is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Invesco Peak Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Peak Retirement 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 Invesco Peak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Peak Retirement has no effect on the direction of Advent Claymore i.e., Advent Claymore and Invesco Peak go up and down completely randomly.
Pair Corralation between Advent Claymore and Invesco Peak
If you would invest 1,113 in Advent Claymore Convertible on September 4, 2024 and sell it today you would earn a total of 117.00 from holding Advent Claymore Convertible or generate 10.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Invesco Peak Retirement
Performance |
| Timeline |
| Advent Claymore Conv |
| Invesco Peak Retirement |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Advent Claymore and Invesco Peak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Invesco Peak
The main advantage of trading using opposite Advent Claymore and Invesco Peak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Invesco Peak 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 Invesco Peak will offset losses from the drop in Invesco Peak'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 |
| Invesco Peak vs. Allianzgi Convertible Income | Invesco Peak vs. Advent Claymore Convertible | Invesco Peak vs. Gabelli Convertible And | Invesco Peak vs. Calamos Dynamic Convertible |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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