Correlation Between Advent Claymore and Mainstay Defined
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Mainstay Defined 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 Mainstay Defined 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 Mainstay Defined Term, you can compare the effects of market volatilities on Advent Claymore and Mainstay Defined 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 Mainstay Defined. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Mainstay Defined.
Diversification Opportunities for Advent Claymore and Mainstay Defined
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Advent and Mainstay is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Mainstay Defined Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Defined Term 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 Mainstay Defined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Defined Term has no effect on the direction of Advent Claymore i.e., Advent Claymore and Mainstay Defined go up and down completely randomly.
Pair Corralation between Advent Claymore and Mainstay Defined
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 1.71 times more return on investment than Mainstay Defined. However, Advent Claymore is 1.71 times more volatile than Mainstay Defined Term. It trades about 0.73 of its potential returns per unit of risk. Mainstay Defined Term is currently generating about 0.2 per unit of risk. If you would invest 1,113 in Advent Claymore Convertible on September 5, 2024 and sell it today you would earn a total of 113.00 from holding Advent Claymore Convertible or generate 10.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Mainstay Defined Term
Performance |
| Timeline |
| Advent Claymore Conv |
| Mainstay Defined Term |
Advent Claymore and Mainstay Defined Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Mainstay Defined
The main advantage of trading using opposite Advent Claymore and Mainstay Defined positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Mainstay Defined 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 Mainstay Defined will offset losses from the drop in Mainstay Defined'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 |
| Mainstay Defined vs. Advent Claymore Convertible | Mainstay Defined vs. Gabelli Convertible And | Mainstay Defined vs. Calamos Dynamic Convertible | Mainstay Defined vs. Virtus 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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