Correlation Between Advent Claymore and Sentinel Small
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Sentinel Small 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 Sentinel Small 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 Sentinel Small Pany, you can compare the effects of market volatilities on Advent Claymore and Sentinel Small 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 Sentinel Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Sentinel Small.
Diversification Opportunities for Advent Claymore and Sentinel Small
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advent and Sentinel is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Sentinel Small Pany in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentinel Small Pany 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 Sentinel Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentinel Small Pany has no effect on the direction of Advent Claymore i.e., Advent Claymore and Sentinel Small go up and down completely randomly.
Pair Corralation between Advent Claymore and Sentinel Small
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 0.82 times more return on investment than Sentinel Small. However, Advent Claymore Convertible is 1.23 times less risky than Sentinel Small. It trades about 0.1 of its potential returns per unit of risk. Sentinel Small Pany is currently generating about 0.04 per unit of risk. If you would invest 1,048 in Advent Claymore Convertible on September 22, 2024 and sell it today you would earn a total of 138.00 from holding Advent Claymore Convertible or generate 13.17% 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. Sentinel Small Pany
Performance |
| Timeline |
| Advent Claymore Conv |
| Sentinel Small Pany |
Advent Claymore and Sentinel Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Sentinel Small
The main advantage of trading using opposite Advent Claymore and Sentinel Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Sentinel Small 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 Sentinel Small will offset losses from the drop in Sentinel Small'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 |
| Sentinel Small vs. Touchstone Small Cap | Sentinel Small vs. Touchstone Sands Capital | Sentinel Small vs. Mid Cap Growth | Sentinel Small vs. Mid Cap Growth |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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