Correlation Between Allianzgi Nfj and Advent Claymore
Can any of the company-specific risk be diversified away by investing in both Allianzgi Nfj 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 Allianzgi Nfj and Advent Claymore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Nfj Dividend and Advent Claymore Convertible, you can compare the effects of market volatilities on Allianzgi Nfj 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 Allianzgi Nfj with a short position of Advent Claymore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Nfj and Advent Claymore.
Diversification Opportunities for Allianzgi Nfj and Advent Claymore
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allianzgi and Advent is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Nfj Dividend 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 Allianzgi Nfj 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 Allianzgi Nfj Dividend 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 Allianzgi Nfj i.e., Allianzgi Nfj and Advent Claymore go up and down completely randomly.
Pair Corralation between Allianzgi Nfj and Advent Claymore
Assuming the 90 days horizon Allianzgi Nfj Dividend is expected to generate 1.39 times more return on investment than Advent Claymore. However, Allianzgi Nfj is 1.39 times more volatile than Advent Claymore Convertible. It trades about 0.02 of its potential returns per unit of risk. Advent Claymore Convertible is currently generating about 0.0 per unit of risk. If you would invest 973.00 in Allianzgi Nfj Dividend on November 9, 2024 and sell it today you would earn a total of 96.00 from holding Allianzgi Nfj Dividend or generate 9.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Nfj Dividend vs. Advent Claymore Convertible
Performance |
| Timeline |
| Allianzgi Nfj Dividend |
| Advent Claymore Conv |
Allianzgi Nfj and Advent Claymore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Nfj and Advent Claymore
The main advantage of trading using opposite Allianzgi Nfj and Advent Claymore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Nfj 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.| Allianzgi Nfj vs. Deutsche Health And | Allianzgi Nfj vs. Health Care Fund | Allianzgi Nfj vs. Hartford Healthcare Hls | Allianzgi Nfj vs. Eaton Vance Worldwide |
| Advent Claymore vs. Legg Mason Global | Advent Claymore vs. Dreyfusstandish Global Fixed | Advent Claymore vs. Ab Global Bond | Advent Claymore vs. Aqr Global Macro |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |