Correlation Between Advent Claymore and Core Fixed
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Core Fixed 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 Core Fixed 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 Core Fixed Income, you can compare the effects of market volatilities on Advent Claymore and Core Fixed 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 Core Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Core Fixed.
Diversification Opportunities for Advent Claymore and Core Fixed
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Advent and Core is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Core Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Fixed Income 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 Core Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Fixed Income has no effect on the direction of Advent Claymore i.e., Advent Claymore and Core Fixed go up and down completely randomly.
Pair Corralation between Advent Claymore and Core Fixed
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 2.64 times more return on investment than Core Fixed. However, Advent Claymore is 2.64 times more volatile than Core Fixed Income. It trades about 0.11 of its potential returns per unit of risk. Core Fixed Income is currently generating about 0.09 per unit of risk. If you would invest 1,061 in Advent Claymore Convertible on September 3, 2024 and sell it today you would earn a total of 157.00 from holding Advent Claymore Convertible or generate 14.8% 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. Core Fixed Income
Performance |
| Timeline |
| Advent Claymore Conv |
| Core Fixed Income |
Advent Claymore and Core Fixed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Core Fixed
The main advantage of trading using opposite Advent Claymore and Core Fixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Core Fixed 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 Core Fixed will offset losses from the drop in Core Fixed's long position.| Advent Claymore vs. Tekla Healthcare Investors | Advent Claymore vs. Tekla Life Sciences | Advent Claymore vs. Cohen Steers Reit | Advent Claymore vs. XAI Octagon Floating |
| Core Fixed vs. Pgim Conservative Retirement | Core Fixed vs. Fidelity Advisor Diversified | Core Fixed vs. Aqr Diversified Arbitrage | Core Fixed vs. Massmutual Select Diversified |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |