Correlation Between Advent Claymore and Hartford Growth
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Hartford Growth 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 Hartford Growth 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 The Hartford Growth, you can compare the effects of market volatilities on Advent Claymore and Hartford Growth 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 Hartford Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Hartford Growth.
Diversification Opportunities for Advent Claymore and Hartford Growth
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advent and Hartford is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and The Hartford Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Growth 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 Hartford Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Growth has no effect on the direction of Advent Claymore i.e., Advent Claymore and Hartford Growth go up and down completely randomly.
Pair Corralation between Advent Claymore and Hartford Growth
Assuming the 90 days horizon Advent Claymore Convertible is expected to generate 0.43 times more return on investment than Hartford Growth. However, Advent Claymore Convertible is 2.33 times less risky than Hartford Growth. It trades about -0.17 of its potential returns per unit of risk. The Hartford Growth is currently generating about -0.4 per unit of risk. If you would invest 1,257 in Advent Claymore Convertible on December 8, 2024 and sell it today you would lose (32.00) from holding Advent Claymore Convertible or give up 2.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. The Hartford Growth
Performance |
| Timeline |
| Advent Claymore Conv |
| Hartford Growth |
Advent Claymore and Hartford Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Hartford Growth
The main advantage of trading using opposite Advent Claymore and Hartford Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Hartford Growth 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 Hartford Growth will offset losses from the drop in Hartford Growth's long position.| Advent Claymore vs. Prudential Financial Services | ||
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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