Correlation Between Advent Claymore and Balanced Strategy
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Balanced Strategy 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 Balanced Strategy 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 Balanced Strategy Fund, you can compare the effects of market volatilities on Advent Claymore and Balanced Strategy 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 Balanced Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Balanced Strategy.
Diversification Opportunities for Advent Claymore and Balanced Strategy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Advent and Balanced is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Balanced Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Balanced Strategy 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 Balanced Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Balanced Strategy has no effect on the direction of Advent Claymore i.e., Advent Claymore and Balanced Strategy go up and down completely randomly.
Pair Corralation between Advent Claymore and Balanced Strategy
If you would invest 914.00 in Advent Claymore Convertible on November 27, 2024 and sell it today you would earn a total of 287.00 from holding Advent Claymore Convertible or generate 31.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Balanced Strategy Fund
Performance |
| Timeline |
| Advent Claymore Conv |
| Balanced Strategy |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Advent Claymore and Balanced Strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Balanced Strategy
The main advantage of trading using opposite Advent Claymore and Balanced Strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Balanced Strategy 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 Balanced Strategy will offset losses from the drop in Balanced Strategy'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 |
| Balanced Strategy vs. L Abbett Growth | Balanced Strategy vs. Touchstone Sands Capital | Balanced Strategy vs. Vanguard Growth Index | Balanced Strategy vs. L Mason Qs |
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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