Correlation Between Advent Claymore and Siit Long
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Siit Long 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 Siit Long 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 Siit Long Duration, you can compare the effects of market volatilities on Advent Claymore and Siit Long 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 Siit Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Siit Long.
Diversification Opportunities for Advent Claymore and Siit Long
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Advent and Siit is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Siit Long Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Long Duration 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 Siit Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Long Duration has no effect on the direction of Advent Claymore i.e., Advent Claymore and Siit Long go up and down completely randomly.
Pair Corralation between Advent Claymore and Siit Long
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 0.95 times more return on investment than Siit Long. However, Advent Claymore Convertible is 1.05 times less risky than Siit Long. It trades about 0.47 of its potential returns per unit of risk. Siit Long Duration is currently generating about 0.09 per unit of risk. If you would invest 1,179 in Advent Claymore Convertible on September 14, 2024 and sell it today you would earn a total of 69.00 from holding Advent Claymore Convertible or generate 5.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Siit Long Duration
Performance |
| Timeline |
| Advent Claymore Conv |
| Siit Long Duration |
Advent Claymore and Siit Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Siit Long
The main advantage of trading using opposite Advent Claymore and Siit Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Siit Long 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 Siit Long will offset losses from the drop in Siit Long'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 |
| Siit Long vs. Advent Claymore Convertible | Siit Long vs. Absolute Convertible Arbitrage | Siit Long vs. Lord Abbett Convertible | Siit Long vs. Virtus Convertible |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |