Correlation Between Value Fund and Advent Claymore
Can any of the company-specific risk be diversified away by investing in both Value Fund 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 Value Fund and Advent Claymore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Value Fund Value and Advent Claymore Convertible, you can compare the effects of market volatilities on Value Fund 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 Value Fund with a short position of Advent Claymore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Value Fund and Advent Claymore.
Diversification Opportunities for Value Fund and Advent Claymore
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Value and Advent is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Value Fund Value 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 Value Fund 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 Value Fund Value 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 Value Fund i.e., Value Fund and Advent Claymore go up and down completely randomly.
Pair Corralation between Value Fund and Advent Claymore
Assuming the 90 days horizon Value Fund Value is expected to under-perform the Advent Claymore. In addition to that, Value Fund is 2.61 times more volatile than Advent Claymore Convertible. It trades about -0.3 of its total potential returns per unit of risk. Advent Claymore Convertible is currently generating about -0.26 per unit of volatility. If you would invest 1,277 in Advent Claymore Convertible on October 9, 2024 and sell it today you would lose (42.00) from holding Advent Claymore Convertible or give up 3.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Value Fund Value vs. Advent Claymore Convertible
Performance |
| Timeline |
| Value Fund Value |
| Advent Claymore Conv |
Value Fund and Advent Claymore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Value Fund and Advent Claymore
The main advantage of trading using opposite Value Fund and Advent Claymore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Value Fund 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.| Value Fund vs. Inverse Government Long | Value Fund vs. Dws Government Money | Value Fund vs. Virtus Seix Government | Value Fund vs. Ab Impact Municipal |
| Advent Claymore vs. Vanguard Total Stock | Advent Claymore vs. Vanguard 500 Index | Advent Claymore vs. Vanguard Total Stock | Advent Claymore vs. Vanguard Total Stock |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |