Correlation Between Qs Global and Advent Claymore
Can any of the company-specific risk be diversified away by investing in both Qs Global 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 Qs Global and Advent Claymore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qs Global Equity and Advent Claymore Convertible, you can compare the effects of market volatilities on Qs Global 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 Qs Global with a short position of Advent Claymore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qs Global and Advent Claymore.
Diversification Opportunities for Qs Global and Advent Claymore
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SMYIX and Advent is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Qs Global Equity 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 Qs Global 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 Qs Global Equity 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 Qs Global i.e., Qs Global and Advent Claymore go up and down completely randomly.
Pair Corralation between Qs Global and Advent Claymore
Assuming the 90 days horizon Qs Global Equity is expected to under-perform the Advent Claymore. In addition to that, Qs Global is 1.7 times more volatile than Advent Claymore Convertible. It trades about -0.19 of its total potential returns per unit of risk. Advent Claymore Convertible is currently generating about -0.19 per unit of volatility. If you would invest 1,270 in Advent Claymore Convertible on October 11, 2024 and sell it today you would lose (34.00) from holding Advent Claymore Convertible or give up 2.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qs Global Equity vs. Advent Claymore Convertible
Performance |
| Timeline |
| Qs Global Equity |
| Advent Claymore Conv |
Qs Global and Advent Claymore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qs Global and Advent Claymore
The main advantage of trading using opposite Qs Global and Advent Claymore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qs Global 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.| Qs Global vs. Eaton Vance Tax Managed | Qs Global vs. Artisan Global Opportunities | Qs Global vs. Sit International Growth | Qs Global vs. Global Stock Fund |
| Advent Claymore vs. Qs Global Equity | Advent Claymore vs. T Rowe Price | Advent Claymore vs. Gmo Global Equity | Advent Claymore vs. Dws Equity Sector |
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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