Correlation Between Advent Claymore and Federated Strategic
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Federated Strategic 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 Federated Strategic 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 Federated Strategic Income, you can compare the effects of market volatilities on Advent Claymore and Federated Strategic 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 Federated Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Federated Strategic.
Diversification Opportunities for Advent Claymore and Federated Strategic
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Advent and Federated is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Federated Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Strategic 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 Federated Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Strategic has no effect on the direction of Advent Claymore i.e., Advent Claymore and Federated Strategic go up and down completely randomly.
Pair Corralation between Advent Claymore and Federated Strategic
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 3.07 times more return on investment than Federated Strategic. However, Advent Claymore is 3.07 times more volatile than Federated Strategic Income. It trades about 0.07 of its potential returns per unit of risk. Federated Strategic Income is currently generating about 0.08 per unit of risk. If you would invest 876.00 in Advent Claymore Convertible on September 4, 2024 and sell it today you would earn a total of 344.00 from holding Advent Claymore Convertible or generate 39.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Federated Strategic Income
Performance |
| Timeline |
| Advent Claymore Conv |
| Federated Strategic |
Advent Claymore and Federated Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Federated Strategic
The main advantage of trading using opposite Advent Claymore and Federated Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Federated Strategic 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 Federated Strategic will offset losses from the drop in Federated Strategic'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 |
| Federated Strategic vs. Franklin Adjustable Government | Federated Strategic vs. Dreyfus Government Cash | Federated Strategic vs. Lord Abbett Government | Federated Strategic vs. Short Term Government Fund |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |