Correlation Between Advent Claymore and Voya Smallcap
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Voya Smallcap 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 Voya Smallcap 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 Voya Smallcap Opportunities, you can compare the effects of market volatilities on Advent Claymore and Voya Smallcap 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 Voya Smallcap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Voya Smallcap.
Diversification Opportunities for Advent Claymore and Voya Smallcap
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Advent and Voya is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Voya Smallcap Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Smallcap Opport 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 Voya Smallcap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Smallcap Opport has no effect on the direction of Advent Claymore i.e., Advent Claymore and Voya Smallcap go up and down completely randomly.
Pair Corralation between Advent Claymore and Voya Smallcap
Considering the 90-day investment horizon Advent Claymore is expected to generate 1.18 times less return on investment than Voya Smallcap. But when comparing it to its historical volatility, Advent Claymore Convertible is 1.35 times less risky than Voya Smallcap. It trades about 0.1 of its potential returns per unit of risk. Voya Smallcap Opportunities is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,791 in Voya Smallcap Opportunities on September 12, 2024 and sell it today you would earn a total of 725.00 from holding Voya Smallcap Opportunities or generate 40.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.7% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Voya Smallcap Opportunities
Performance |
| Timeline |
| Advent Claymore Conv |
| Voya Smallcap Opport |
Advent Claymore and Voya Smallcap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Voya Smallcap
The main advantage of trading using opposite Advent Claymore and Voya Smallcap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Voya Smallcap 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 Voya Smallcap will offset losses from the drop in Voya Smallcap'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 |
| Voya Smallcap vs. Lord Abbett Convertible | Voya Smallcap vs. Allianzgi Convertible Income | Voya Smallcap vs. Virtus Convertible | Voya Smallcap 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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