Correlation Between Dupont De and Advent Claymore
Can any of the company-specific risk be diversified away by investing in both Dupont De 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 Dupont De and Advent Claymore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dupont De Nemours and Advent Claymore Convertible, you can compare the effects of market volatilities on Dupont De 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 Dupont De with a short position of Advent Claymore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Advent Claymore.
Diversification Opportunities for Dupont De and Advent Claymore
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dupont and Advent is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours 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 Dupont De 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 Dupont De Nemours 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 Dupont De i.e., Dupont De and Advent Claymore go up and down completely randomly.
Pair Corralation between Dupont De and Advent Claymore
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to under-perform the Advent Claymore. In addition to that, Dupont De is 1.89 times more volatile than Advent Claymore Convertible. It trades about -0.01 of its total potential returns per unit of risk. Advent Claymore Convertible is currently generating about 0.02 per unit of volatility. If you would invest 1,226 in Advent Claymore Convertible on October 25, 2024 and sell it today you would earn a total of 22.00 from holding Advent Claymore Convertible or generate 1.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Dupont De Nemours vs. Advent Claymore Convertible
Performance |
| Timeline |
| Dupont De Nemours |
| Advent Claymore Conv |
Dupont De and Advent Claymore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Advent Claymore
The main advantage of trading using opposite Dupont De and Advent Claymore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De 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.| Dupont De vs. Eastman Chemical | Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide |
| Advent Claymore vs. Hewitt Money Market | Advent Claymore vs. Schwab Government Money | Advent Claymore vs. Hsbc Treasury Money | Advent Claymore vs. Dws Government Money |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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