Correlation Between Guggenheim Small and Advent Claymore
Can any of the company-specific risk be diversified away by investing in both Guggenheim Small 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 Small 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 Small Cap and Advent Claymore Convertible, you can compare the effects of market volatilities on Guggenheim Small 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 Small with a short position of Advent Claymore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Small and Advent Claymore.
Diversification Opportunities for Guggenheim Small and Advent Claymore
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Guggenheim and Advent is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Small Cap 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 Small 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 Small Cap 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 Small i.e., Guggenheim Small and Advent Claymore go up and down completely randomly.
Pair Corralation between Guggenheim Small and Advent Claymore
If you would invest 1,224 in Advent Claymore Convertible on November 2, 2024 and sell it today you would earn a total of 22.00 from holding Advent Claymore Convertible or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Guggenheim Small Cap vs. Advent Claymore Convertible
Performance |
| Timeline |
| Guggenheim Small Cap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Advent Claymore Conv |
Guggenheim Small and Advent Claymore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Small and Advent Claymore
The main advantage of trading using opposite Guggenheim Small and Advent Claymore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Small 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 Small vs. Transamerica High Yield | Guggenheim Small vs. Ab High Income | Guggenheim Small vs. Siit High Yield | Guggenheim Small vs. Pace High Yield |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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