Correlation Between Advent Claymore and Harbor Diversified
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Harbor Diversified 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 Harbor Diversified 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 Harbor Diversified International, you can compare the effects of market volatilities on Advent Claymore and Harbor Diversified 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 Harbor Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Harbor Diversified.
Diversification Opportunities for Advent Claymore and Harbor Diversified
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advent and Harbor is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Harbor Diversified Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor Diversified 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 Harbor Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Diversified has no effect on the direction of Advent Claymore i.e., Advent Claymore and Harbor Diversified go up and down completely randomly.
Pair Corralation between Advent Claymore and Harbor Diversified
Assuming the 90 days horizon Advent Claymore Convertible is expected to under-perform the Harbor Diversified. But the mutual fund apears to be less risky and, when comparing its historical volatility, Advent Claymore Convertible is 1.14 times less risky than Harbor Diversified. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Harbor Diversified International is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,116 in Harbor Diversified International on October 23, 2024 and sell it today you would earn a total of 88.00 from holding Harbor Diversified International or generate 7.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Harbor Diversified Internation
Performance |
| Timeline |
| Advent Claymore Conv |
| Harbor Diversified |
Advent Claymore and Harbor Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Harbor Diversified
The main advantage of trading using opposite Advent Claymore and Harbor Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Harbor Diversified 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 Harbor Diversified will offset losses from the drop in Harbor Diversified's long position.| Advent Claymore vs. Tax Managed Mid Small | Advent Claymore vs. Nasdaq 100 Profund Nasdaq 100 | Advent Claymore vs. Qs Large Cap | Advent Claymore vs. Ultranasdaq 100 Profund Ultranasdaq 100 |
| Harbor Diversified vs. Calamos Dynamic Convertible | Harbor Diversified vs. Advent Claymore Convertible | Harbor Diversified vs. Rationalpier 88 Convertible | Harbor Diversified vs. Virtus Convertible |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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