Correlation Between Westcore International and Advent Claymore
Can any of the company-specific risk be diversified away by investing in both Westcore International 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 Westcore International and Advent Claymore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westcore International Small Cap and Advent Claymore Convertible, you can compare the effects of market volatilities on Westcore International 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 Westcore International with a short position of Advent Claymore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westcore International and Advent Claymore.
Diversification Opportunities for Westcore International and Advent Claymore
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Westcore and Advent is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Westcore International Small C 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 Westcore International 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 Westcore International 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 Westcore International i.e., Westcore International and Advent Claymore go up and down completely randomly.
Pair Corralation between Westcore International and Advent Claymore
If you would invest 1,113 in Advent Claymore Convertible on September 4, 2024 and sell it today you would earn a total of 107.00 from holding Advent Claymore Convertible or generate 9.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Westcore International Small C vs. Advent Claymore Convertible
Performance |
| Timeline |
| Westcore International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Advent Claymore Conv |
Westcore International and Advent Claymore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westcore International and Advent Claymore
The main advantage of trading using opposite Westcore International and Advent Claymore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westcore International 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.| Westcore International vs. Nasdaq 100 Fund Class | Westcore International vs. Rbb Fund | Westcore International vs. Eic Value Fund | Westcore International vs. Commodities Strategy Fund |
| Advent Claymore vs. Nuveen Global High | Advent Claymore vs. Blackstone Gso Strategic | Advent Claymore vs. Thornburg Income Builder | Advent Claymore vs. Western Asset Diversified |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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