Correlation Between Advent Claymore and Old Westbury
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Old Westbury 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 Old Westbury 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 Old Westbury Short Term, you can compare the effects of market volatilities on Advent Claymore and Old Westbury 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 Old Westbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Old Westbury.
Diversification Opportunities for Advent Claymore and Old Westbury
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advent and Old is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Old Westbury Short Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Westbury Short 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 Old Westbury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Westbury Short has no effect on the direction of Advent Claymore i.e., Advent Claymore and Old Westbury go up and down completely randomly.
Pair Corralation between Advent Claymore and Old Westbury
If you would invest 1,010 in Old Westbury Short Term on October 12, 2024 and sell it today you would earn a total of 0.00 from holding Old Westbury Short Term or generate 0.0% 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. Old Westbury Short Term
Performance |
| Timeline |
| Advent Claymore Conv |
| Old Westbury Short |
Advent Claymore and Old Westbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Old Westbury
The main advantage of trading using opposite Advent Claymore and Old Westbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Old Westbury 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 Old Westbury will offset losses from the drop in Old Westbury's long position.| Advent Claymore vs. Virtus Multi Sector Short | Advent Claymore vs. Ultra Short Fixed Income | Advent Claymore vs. Transamerica Short Term Bond | Advent Claymore vs. Aamhimco Short Duration |
| Old Westbury vs. Putnam Vertible Securities | Old Westbury vs. Gabelli Convertible And | Old Westbury vs. Advent Claymore Convertible | Old Westbury vs. Franklin Vertible Securities |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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