Correlation Between Guggenheim Taxable and Advent Claymore
Can any of the company-specific risk be diversified away by investing in both Guggenheim Taxable 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 Guggenheim Taxable and Advent Claymore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guggenheim Taxable Municipal and Advent Claymore Convertible, you can compare the effects of market volatilities on Guggenheim Taxable 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 Guggenheim Taxable with a short position of Advent Claymore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Taxable and Advent Claymore.
Diversification Opportunities for Guggenheim Taxable and Advent Claymore
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guggenheim and Advent is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Taxable Municipal 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 Guggenheim Taxable 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 Guggenheim Taxable Municipal 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 Guggenheim Taxable i.e., Guggenheim Taxable and Advent Claymore go up and down completely randomly.
Pair Corralation between Guggenheim Taxable and Advent Claymore
Given the investment horizon of 90 days Guggenheim Taxable is expected to generate 2.43 times less return on investment than Advent Claymore. But when comparing it to its historical volatility, Guggenheim Taxable Municipal is 1.0 times less risky than Advent Claymore. It trades about 0.04 of its potential returns per unit of risk. Advent Claymore Convertible is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 905.00 in Advent Claymore Convertible on August 31, 2024 and sell it today you would earn a total of 313.00 from holding Advent Claymore Convertible or generate 34.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim Taxable Municipal vs. Advent Claymore Convertible
Performance |
| Timeline |
| Guggenheim Taxable |
| Advent Claymore Conv |
Guggenheim Taxable and Advent Claymore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Taxable and Advent Claymore
The main advantage of trading using opposite Guggenheim Taxable and Advent Claymore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Taxable 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.| Guggenheim Taxable vs. Blackrock Floating Rate | Guggenheim Taxable vs. Eaton Vance Senior | Guggenheim Taxable vs. Eaton Vance Senior | Guggenheim Taxable vs. Blackrock Debt Strategies |
| Advent Claymore vs. MFS Investment Grade | Advent Claymore vs. Eaton Vance Municipal | Advent Claymore vs. DTF Tax Free | Advent Claymore vs. HUMANA INC |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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