Correlation Between Advent Claymore and Strategic Asset
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Strategic Asset 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 Strategic Asset 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 Strategic Asset Management, you can compare the effects of market volatilities on Advent Claymore and Strategic Asset 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 Strategic Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Strategic Asset.
Diversification Opportunities for Advent Claymore and Strategic Asset
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advent and Strategic is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Strategic Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Asset Mana 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 Strategic Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Asset Mana has no effect on the direction of Advent Claymore i.e., Advent Claymore and Strategic Asset go up and down completely randomly.
Pair Corralation between Advent Claymore and Strategic Asset
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 1.26 times more return on investment than Strategic Asset. However, Advent Claymore is 1.26 times more volatile than Strategic Asset Management. It trades about 0.07 of its potential returns per unit of risk. Strategic Asset Management is currently generating about 0.07 per unit of risk. If you would invest 876.00 in Advent Claymore Convertible on September 4, 2024 and sell it today you would earn a total of 344.00 from holding Advent Claymore Convertible or generate 39.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Strategic Asset Management
Performance |
| Timeline |
| Advent Claymore Conv |
| Strategic Asset Mana |
Advent Claymore and Strategic Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Strategic Asset
The main advantage of trading using opposite Advent Claymore and Strategic Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Strategic Asset 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 Strategic Asset will offset losses from the drop in Strategic Asset'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 |
| Strategic Asset vs. Strategic Asset Management | Strategic Asset vs. Strategic Asset Management | Strategic Asset vs. Strategic Asset Management | Strategic Asset vs. Strategic Asset Management |
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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