Correlation Between Advent Claymore and Calamos Convertible
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Calamos Convertible 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 Calamos Convertible 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 Calamos Vertible Fund, you can compare the effects of market volatilities on Advent Claymore and Calamos Convertible 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 Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Calamos Convertible.
Diversification Opportunities for Advent Claymore and Calamos Convertible
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Advent and Calamos is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Calamos Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible 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 Calamos Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Convertible has no effect on the direction of Advent Claymore i.e., Advent Claymore and Calamos Convertible go up and down completely randomly.
Pair Corralation between Advent Claymore and Calamos Convertible
Assuming the 90 days horizon Advent Claymore Convertible is expected to generate 0.84 times more return on investment than Calamos Convertible. However, Advent Claymore Convertible is 1.2 times less risky than Calamos Convertible. It trades about -0.19 of its potential returns per unit of risk. Calamos Vertible Fund is currently generating about -0.22 per unit of risk. If you would invest 1,270 in Advent Claymore Convertible on October 11, 2024 and sell it today you would lose (34.00) from holding Advent Claymore Convertible or give up 2.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Calamos Vertible Fund
Performance |
| Timeline |
| Advent Claymore Conv |
| Calamos Convertible |
Advent Claymore and Calamos Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Calamos Convertible
The main advantage of trading using opposite Advent Claymore and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Calamos Convertible 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 Calamos Convertible will offset losses from the drop in Calamos Convertible's long position.| Advent Claymore vs. Qs Global Equity | Advent Claymore vs. T Rowe Price | Advent Claymore vs. Gmo Global Equity | Advent Claymore vs. Dws Equity Sector |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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