Correlation Between Advent Claymore and Thornburg Value
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Thornburg Value 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 Thornburg Value 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 Thornburg Value Fund, you can compare the effects of market volatilities on Advent Claymore and Thornburg Value 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 Thornburg Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Thornburg Value.
Diversification Opportunities for Advent Claymore and Thornburg Value
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Advent and Thornburg is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Thornburg Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thornburg Value 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 Thornburg Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thornburg Value has no effect on the direction of Advent Claymore i.e., Advent Claymore and Thornburg Value go up and down completely randomly.
Pair Corralation between Advent Claymore and Thornburg Value
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 0.79 times more return on investment than Thornburg Value. However, Advent Claymore Convertible is 1.27 times less risky than Thornburg Value. It trades about 0.14 of its potential returns per unit of risk. Thornburg Value Fund is currently generating about 0.09 per unit of risk. If you would invest 931.00 in Advent Claymore Convertible on September 14, 2024 and sell it today you would earn a total of 317.00 from holding Advent Claymore Convertible or generate 34.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Thornburg Value Fund
Performance |
| Timeline |
| Advent Claymore Conv |
| Thornburg Value |
Advent Claymore and Thornburg Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Thornburg Value
The main advantage of trading using opposite Advent Claymore and Thornburg Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Thornburg Value 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 Thornburg Value will offset losses from the drop in Thornburg Value'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 |
| Thornburg Value vs. Thornburg Value Fund | Thornburg Value vs. Thornburg New York | Thornburg Value vs. Thornburg International Value | Thornburg Value vs. Thornburg International Value |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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