Correlation Between Advent Claymore and Ab Bond
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Ab Bond 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 Advent Claymore and Ab Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advent Claymore Convertible and Ab Bond Inflation, you can compare the effects of market volatilities on Advent Claymore and Ab Bond 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 Advent Claymore with a short position of Ab Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Ab Bond.
Diversification Opportunities for Advent Claymore and Ab Bond
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advent and ABNYX is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Ab Bond Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Bond Inflation and Advent Claymore 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 Advent Claymore Convertible are associated (or correlated) with Ab Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Bond Inflation has no effect on the direction of Advent Claymore i.e., Advent Claymore and Ab Bond go up and down completely randomly.
Pair Corralation between Advent Claymore and Ab Bond
Assuming the 90 days horizon Advent Claymore Convertible is expected to under-perform the Ab Bond. In addition to that, Advent Claymore is 2.5 times more volatile than Ab Bond Inflation. It trades about -0.02 of its total potential returns per unit of risk. Ab Bond Inflation is currently generating about 0.06 per unit of volatility. If you would invest 961.00 in Ab Bond Inflation on October 25, 2024 and sell it today you would earn a total of 75.00 from holding Ab Bond Inflation or generate 7.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Ab Bond Inflation
Performance |
| Timeline |
| Advent Claymore Conv |
| Ab Bond Inflation |
Advent Claymore and Ab Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Ab Bond
The main advantage of trading using opposite Advent Claymore and Ab Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Ab Bond 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 Ab Bond will offset losses from the drop in Ab Bond's long position.| Advent Claymore vs. Hewitt Money Market | Advent Claymore vs. Schwab Government Money | Advent Claymore vs. Hsbc Treasury Money | Advent Claymore vs. Dws Government Money |
| Ab Bond vs. Franklin High Yield | Ab Bond vs. Gmo High Yield | Ab Bond vs. Barings High Yield | Ab Bond vs. Ambrus Core Bond |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |