Correlation Between Columbia Convertible and Advent Claymore
Can any of the company-specific risk be diversified away by investing in both Columbia Convertible and Advent Claymore 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 Columbia Convertible and Advent Claymore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Vertible Securities and Advent Claymore Convertible, you can compare the effects of market volatilities on Columbia Convertible and Advent Claymore 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 Columbia Convertible with a short position of Advent Claymore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Convertible and Advent Claymore.
Diversification Opportunities for Columbia Convertible and Advent Claymore
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Columbia and Advent is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Vertible Securities and Advent Claymore Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advent Claymore Conv and Columbia Convertible 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 Columbia Vertible Securities are associated (or correlated) with Advent Claymore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advent Claymore Conv has no effect on the direction of Columbia Convertible i.e., Columbia Convertible and Advent Claymore go up and down completely randomly.
Pair Corralation between Columbia Convertible and Advent Claymore
Assuming the 90 days horizon Columbia Vertible Securities is expected to generate 0.49 times more return on investment than Advent Claymore. However, Columbia Vertible Securities is 2.06 times less risky than Advent Claymore. It trades about 0.33 of its potential returns per unit of risk. Advent Claymore Convertible is currently generating about 0.09 per unit of risk. If you would invest 2,127 in Columbia Vertible Securities on September 2, 2024 and sell it today you would earn a total of 207.00 from holding Columbia Vertible Securities or generate 9.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Columbia Vertible Securities vs. Advent Claymore Convertible
Performance |
| Timeline |
| Columbia Convertible |
| Advent Claymore Conv |
Columbia Convertible and Advent Claymore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Convertible and Advent Claymore
The main advantage of trading using opposite Columbia Convertible and Advent Claymore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Convertible position performs unexpectedly, Advent Claymore 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 Advent Claymore will offset losses from the drop in Advent Claymore's long position.| Columbia Convertible vs. Legg Mason Partners | Columbia Convertible vs. Qs Small Capitalization | Columbia Convertible vs. Small Pany Growth | Columbia Convertible vs. Baird Smallmid Cap |
| Advent Claymore vs. Nuveen Global High | Advent Claymore vs. Blackstone Gso Strategic | Advent Claymore vs. Thornburg Income Builder | Advent Claymore vs. Western Asset Diversified |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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