Correlation Between Advent Claymore and Att 5
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Att 5 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 Att 5 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 Att 5 Percent, you can compare the effects of market volatilities on Advent Claymore and Att 5 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 Att 5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Att 5.
Diversification Opportunities for Advent Claymore and Att 5
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Advent and Att is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Att 5 Percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Att 5 Percent 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 Att 5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Att 5 Percent has no effect on the direction of Advent Claymore i.e., Advent Claymore and Att 5 go up and down completely randomly.
Pair Corralation between Advent Claymore and Att 5
If you would invest 932.00 in Advent Claymore Convertible on September 12, 2024 and sell it today you would earn a total of 304.00 from holding Advent Claymore Convertible or generate 32.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Att 5 Percent
Performance |
| Timeline |
| Advent Claymore Conv |
| Att 5 Percent |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Advent Claymore and Att 5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Att 5
The main advantage of trading using opposite Advent Claymore and Att 5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Att 5 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 Att 5 will offset losses from the drop in Att 5'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 |
| Att 5 vs. Advent Claymore Convertible | Att 5 vs. Virtus Convertible | Att 5 vs. Gabelli Convertible And | Att 5 vs. Putnam Convertible Incm Gwth |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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