Correlation Between Advent Claymore and Vela International
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Vela International 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 Vela International 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 Vela International, you can compare the effects of market volatilities on Advent Claymore and Vela International 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 Vela International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Vela International.
Diversification Opportunities for Advent Claymore and Vela International
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Advent and Vela is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Vela International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vela International 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 Vela International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vela International has no effect on the direction of Advent Claymore i.e., Advent Claymore and Vela International go up and down completely randomly.
Pair Corralation between Advent Claymore and Vela International
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 1.37 times more return on investment than Vela International. However, Advent Claymore is 1.37 times more volatile than Vela International. It trades about 0.09 of its potential returns per unit of risk. Vela International is currently generating about 0.04 per unit of risk. If you would invest 905.00 in Advent Claymore Convertible on August 31, 2024 and sell it today you would earn a total of 313.00 from holding Advent Claymore Convertible or generate 34.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Vela International
Performance |
| Timeline |
| Advent Claymore Conv |
| Vela International |
Advent Claymore and Vela International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Vela International
The main advantage of trading using opposite Advent Claymore and Vela International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Vela International 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 Vela International will offset losses from the drop in Vela International's long position.| Advent Claymore vs. MFS Investment Grade | Advent Claymore vs. Eaton Vance Municipal | Advent Claymore vs. DTF Tax Free | Advent Claymore vs. HUMANA INC |
| Vela International vs. Allianzgi Convertible Income | Vela International vs. Fidelity Sai Convertible | Vela International vs. Harbor Vertible Securities | Vela International vs. Advent Claymore Convertible |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |