Correlation Between Advent Claymore and Putnam International
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Putnam International 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 International 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 International Capital, you can compare the effects of market volatilities on Advent Claymore and Putnam International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Putnam International.
Diversification Opportunities for Advent Claymore and Putnam International
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Advent and Putnam is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Putnam International Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam International 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 International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam International has no effect on the direction of Advent Claymore i.e., Advent Claymore and Putnam International go up and down completely randomly.
Pair Corralation between Advent Claymore and Putnam International
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 1.16 times more return on investment than Putnam International. However, Advent Claymore is 1.16 times more volatile than Putnam International Capital. It trades about 0.09 of its potential returns per unit of risk. Putnam International Capital is currently generating about 0.04 per unit of risk. If you would invest 905.00 in Advent Claymore Convertible on September 2, 2024 and sell it today you would earn a total of 313.00 from holding Advent Claymore Convertible or generate 34.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Putnam International Capital
Performance |
| Timeline |
| Advent Claymore Conv |
| Putnam International |
Advent Claymore and Putnam International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Putnam International
The main advantage of trading using opposite Advent Claymore and Putnam International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Putnam International 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 International will offset losses from the drop in Putnam International'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 |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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