Correlation Between Advent Claymore and Dunham Large
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Dunham Large 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 Dunham Large 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 Dunham Large Cap, you can compare the effects of market volatilities on Advent Claymore and Dunham Large 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 Dunham Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Dunham Large.
Diversification Opportunities for Advent Claymore and Dunham Large
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Advent and Dunham is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Dunham Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Large 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 Dunham Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Large Cap has no effect on the direction of Advent Claymore i.e., Advent Claymore and Dunham Large go up and down completely randomly.
Pair Corralation between Advent Claymore and Dunham Large
Assuming the 90 days horizon Advent Claymore is expected to generate 2.57 times less return on investment than Dunham Large. But when comparing it to its historical volatility, Advent Claymore Convertible is 1.27 times less risky than Dunham Large. It trades about 0.16 of its potential returns per unit of risk. Dunham Large Cap is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 1,909 in Dunham Large Cap on November 3, 2024 and sell it today you would earn a total of 90.00 from holding Dunham Large Cap or generate 4.71% 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. Dunham Large Cap
Performance |
| Timeline |
| Advent Claymore Conv |
| Dunham Large Cap |
Advent Claymore and Dunham Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Dunham Large
The main advantage of trading using opposite Advent Claymore and Dunham Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Dunham Large 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 Dunham Large will offset losses from the drop in Dunham Large's long position.| Advent Claymore vs. Tiaa Cref Large Cap Value | Advent Claymore vs. Fisher Large Cap | Advent Claymore vs. Qs Large Cap | Advent Claymore vs. Guidemark Large Cap |
| Dunham Large vs. Doubleline Emerging Markets | Dunham Large vs. Ashmore Emerging Markets | Dunham Large vs. Mid Cap 15x Strategy | Dunham Large vs. Angel Oak Multi Strategy |
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.
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