Correlation Between Advent Claymore and Bbh Intermediate
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Bbh Intermediate 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 Bbh Intermediate 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 Bbh Intermediate Municipal, you can compare the effects of market volatilities on Advent Claymore and Bbh Intermediate 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 Bbh Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Bbh Intermediate.
Diversification Opportunities for Advent Claymore and Bbh Intermediate
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Advent and Bbh is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Bbh Intermediate Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bbh Intermediate Mun 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 Bbh Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bbh Intermediate Mun has no effect on the direction of Advent Claymore i.e., Advent Claymore and Bbh Intermediate go up and down completely randomly.
Pair Corralation between Advent Claymore and Bbh Intermediate
Assuming the 90 days horizon Advent Claymore Convertible is expected to under-perform the Bbh Intermediate. In addition to that, Advent Claymore is 3.34 times more volatile than Bbh Intermediate Municipal. It trades about -0.23 of its total potential returns per unit of risk. Bbh Intermediate Municipal is currently generating about -0.35 per unit of volatility. If you would invest 1,032 in Bbh Intermediate Municipal on October 16, 2024 and sell it today you would lose (13.00) from holding Bbh Intermediate Municipal or give up 1.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Bbh Intermediate Municipal
Performance |
| Timeline |
| Advent Claymore Conv |
| Bbh Intermediate Mun |
Advent Claymore and Bbh Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Bbh Intermediate
The main advantage of trading using opposite Advent Claymore and Bbh Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Bbh Intermediate 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 Bbh Intermediate will offset losses from the drop in Bbh Intermediate's long position.| Advent Claymore vs. Vanguard Total Stock | Advent Claymore vs. Vanguard 500 Index | Advent Claymore vs. Vanguard Total Stock | Advent Claymore vs. Vanguard Total Stock |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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