Correlation Between Advent Claymore and Swan Defined
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Swan Defined 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 Swan Defined 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 Swan Defined Risk, you can compare the effects of market volatilities on Advent Claymore and Swan Defined 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 Swan Defined. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Swan Defined.
Diversification Opportunities for Advent Claymore and Swan Defined
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Advent and Swan is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Swan Defined Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swan Defined Risk 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 Swan Defined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swan Defined Risk has no effect on the direction of Advent Claymore i.e., Advent Claymore and Swan Defined go up and down completely randomly.
Pair Corralation between Advent Claymore and Swan Defined
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 0.81 times more return on investment than Swan Defined. However, Advent Claymore Convertible is 1.23 times less risky than Swan Defined. It trades about 0.73 of its potential returns per unit of risk. Swan Defined Risk is currently generating about -0.12 per unit of risk. If you would invest 1,113 in Advent Claymore Convertible on September 4, 2024 and sell it today you would earn a total of 107.00 from holding Advent Claymore Convertible or generate 9.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Swan Defined Risk
Performance |
| Timeline |
| Advent Claymore Conv |
| Swan Defined Risk |
Advent Claymore and Swan Defined Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Swan Defined
The main advantage of trading using opposite Advent Claymore and Swan Defined positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Swan Defined 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 Swan Defined will offset losses from the drop in Swan Defined'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 |
| Swan Defined vs. Swan Defined Risk | Swan Defined vs. Swan Defined Risk | Swan Defined vs. Swan Defined Risk | Swan Defined vs. Swan Defined Risk |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |