Correlation Between Advent Claymore and Thrivent Moderately
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Thrivent Moderately 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 Thrivent Moderately 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 Thrivent Moderately Servative, you can compare the effects of market volatilities on Advent Claymore and Thrivent Moderately 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 Thrivent Moderately. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Thrivent Moderately.
Diversification Opportunities for Advent Claymore and Thrivent Moderately
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Advent and Thrivent is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Thrivent Moderately Servative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent Moderately 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 Thrivent Moderately. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent Moderately has no effect on the direction of Advent Claymore i.e., Advent Claymore and Thrivent Moderately go up and down completely randomly.
Pair Corralation between Advent Claymore and Thrivent Moderately
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 2.67 times more return on investment than Thrivent Moderately. However, Advent Claymore is 2.67 times more volatile than Thrivent Moderately Servative. It trades about 0.2 of its potential returns per unit of risk. Thrivent Moderately Servative is currently generating about 0.12 per unit of risk. If you would invest 1,117 in Advent Claymore Convertible on September 12, 2024 and sell it today you would earn a total of 119.00 from holding Advent Claymore Convertible or generate 10.65% 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. Thrivent Moderately Servative
Performance |
| Timeline |
| Advent Claymore Conv |
| Thrivent Moderately |
Advent Claymore and Thrivent Moderately Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Thrivent Moderately
The main advantage of trading using opposite Advent Claymore and Thrivent Moderately positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Thrivent Moderately 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 Thrivent Moderately will offset losses from the drop in Thrivent Moderately'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 |
| Thrivent Moderately vs. Buffalo High Yield | Thrivent Moderately vs. Strategic Advisers Income | Thrivent Moderately vs. Gmo High Yield | Thrivent Moderately vs. Pace High Yield |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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