Correlation Between Eaton Vance and Advent Claymore
Can any of the company-specific risk be diversified away by investing in both Eaton Vance 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 Eaton Vance and Advent Claymore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance National and Advent Claymore Convertible, you can compare the effects of market volatilities on Eaton Vance 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 Eaton Vance with a short position of Advent Claymore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Advent Claymore.
Diversification Opportunities for Eaton Vance and Advent Claymore
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eaton and Advent is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance National 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 Eaton Vance 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 Eaton Vance National 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 Eaton Vance i.e., Eaton Vance and Advent Claymore go up and down completely randomly.
Pair Corralation between Eaton Vance and Advent Claymore
Considering the 90-day investment horizon Eaton Vance National is expected to under-perform the Advent Claymore. But the stock apears to be less risky and, when comparing its historical volatility, Eaton Vance National is 1.13 times less risky than Advent Claymore. The stock trades about -0.03 of its potential returns per unit of risk. The Advent Claymore Convertible is currently generating about 0.81 of returns per unit of risk over similar time horizon. If you would invest 1,102 in Advent Claymore Convertible on September 1, 2024 and sell it today you would earn a total of 116.00 from holding Advent Claymore Convertible or generate 10.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance National vs. Advent Claymore Convertible
Performance |
| Timeline |
| Eaton Vance National |
| Advent Claymore Conv |
Eaton Vance and Advent Claymore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Advent Claymore
The main advantage of trading using opposite Eaton Vance and Advent Claymore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance 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.| Eaton Vance vs. Visa Class A | Eaton Vance vs. Diamond Hill Investment | Eaton Vance vs. Distoken Acquisition | Eaton Vance vs. Associated Capital Group |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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