Correlation Between Advent Claymore and Invesco Floating
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Invesco Floating 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 Invesco Floating 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 Invesco Floating Rate, you can compare the effects of market volatilities on Advent Claymore and Invesco Floating 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 Invesco Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Invesco Floating.
Diversification Opportunities for Advent Claymore and Invesco Floating
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Advent and Invesco is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Invesco Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Floating Rate 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 Invesco Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Floating Rate has no effect on the direction of Advent Claymore i.e., Advent Claymore and Invesco Floating go up and down completely randomly.
Pair Corralation between Advent Claymore and Invesco Floating
Assuming the 90 days horizon Advent Claymore Convertible is expected to under-perform the Invesco Floating. In addition to that, Advent Claymore is 3.39 times more volatile than Invesco Floating Rate. It trades about -0.01 of its total potential returns per unit of risk. Invesco Floating Rate is currently generating about 0.16 per unit of volatility. If you would invest 567.00 in Invesco Floating Rate on October 31, 2024 and sell it today you would earn a total of 101.00 from holding Invesco Floating Rate or generate 17.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Invesco Floating Rate
Performance |
| Timeline |
| Advent Claymore Conv |
| Invesco Floating Rate |
Advent Claymore and Invesco Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Invesco Floating
The main advantage of trading using opposite Advent Claymore and Invesco Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Invesco Floating 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 Invesco Floating will offset losses from the drop in Invesco Floating's long position.| Advent Claymore vs. Qs Large Cap | Advent Claymore vs. Smead Value Fund | Advent Claymore vs. Tiaa Cref Large Cap Value | Advent Claymore vs. Nuveen Nwq Large Cap |
| Invesco Floating vs. Needham Aggressive Growth | Invesco Floating vs. T Rowe Price | Invesco Floating vs. Vy Baron Growth | Invesco Floating vs. Mid Cap Growth |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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