Correlation Between Advent Claymore and Cardinal Small
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Cardinal Small 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 Cardinal Small 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 Cardinal Small Cap, you can compare the effects of market volatilities on Advent Claymore and Cardinal Small 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 Cardinal Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Cardinal Small.
Diversification Opportunities for Advent Claymore and Cardinal Small
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Advent and Cardinal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Cardinal Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Small Cap 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 Cardinal Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardinal Small Cap has no effect on the direction of Advent Claymore i.e., Advent Claymore and Cardinal Small go up and down completely randomly.
Pair Corralation between Advent Claymore and Cardinal Small
If you would invest 1,224 in Advent Claymore Convertible on November 3, 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 | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Cardinal Small Cap
Performance |
| Timeline |
| Advent Claymore Conv |
| Cardinal Small Cap |
Advent Claymore and Cardinal Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Cardinal Small
The main advantage of trading using opposite Advent Claymore and Cardinal Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Cardinal Small 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 Cardinal Small will offset losses from the drop in Cardinal Small's long position.| Advent Claymore vs. Pace High Yield | Advent Claymore vs. Ironclad Managed Risk | Advent Claymore vs. Gugg Actv Invmt | Advent Claymore vs. Needham Aggressive Growth |
| Cardinal Small vs. Gabelli Global Financial | Cardinal Small vs. Mesirow Financial Small | Cardinal Small vs. Financial Industries Fund | Cardinal Small vs. Angel Oak Financial |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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