Correlation Between Advent Claymore and Financial Services
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Financial Services 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 Financial Services 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 Financial Services Portfolio, you can compare the effects of market volatilities on Advent Claymore and Financial Services 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 Financial Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Financial Services.
Diversification Opportunities for Advent Claymore and Financial Services
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Advent and Financial is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Financial Services Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Financial Services 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 Financial Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Financial Services has no effect on the direction of Advent Claymore i.e., Advent Claymore and Financial Services go up and down completely randomly.
Pair Corralation between Advent Claymore and Financial Services
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 0.96 times more return on investment than Financial Services. However, Advent Claymore Convertible is 1.04 times less risky than Financial Services. It trades about 0.1 of its potential returns per unit of risk. Financial Services Portfolio is currently generating about 0.09 per unit of risk. If you would invest 920.00 in Advent Claymore Convertible on September 12, 2024 and sell it today you would earn a total of 316.00 from holding Advent Claymore Convertible or generate 34.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Financial Services Portfolio
Performance |
| Timeline |
| Advent Claymore Conv |
| Financial Services |
Advent Claymore and Financial Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Financial Services
The main advantage of trading using opposite Advent Claymore and Financial Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Financial Services 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 Financial Services will offset losses from the drop in Financial Services' 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 |
| Financial Services vs. Virtus Convertible | Financial Services vs. Rationalpier 88 Convertible | Financial Services vs. Advent Claymore Convertible | Financial Services vs. Allianzgi Convertible Income |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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