Correlation Between Advent Claymore and Pimco Preferred
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Pimco Preferred 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 Pimco Preferred 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 Pimco Preferred And, you can compare the effects of market volatilities on Advent Claymore and Pimco Preferred 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 Pimco Preferred. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Pimco Preferred.
Diversification Opportunities for Advent Claymore and Pimco Preferred
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Advent and Pimco is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Pimco Preferred And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Preferred And 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 Pimco Preferred. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Preferred And has no effect on the direction of Advent Claymore i.e., Advent Claymore and Pimco Preferred go up and down completely randomly.
Pair Corralation between Advent Claymore and Pimco Preferred
Assuming the 90 days horizon Advent Claymore is expected to generate 17.76 times less return on investment than Pimco Preferred. In addition to that, Advent Claymore is 2.87 times more volatile than Pimco Preferred And. It trades about 0.0 of its total potential returns per unit of risk. Pimco Preferred And is currently generating about 0.19 per unit of volatility. If you would invest 749.00 in Pimco Preferred And on December 12, 2024 and sell it today you would earn a total of 182.00 from holding Pimco Preferred And or generate 24.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Pimco Preferred And
Performance |
| Timeline |
| Advent Claymore Conv |
| Pimco Preferred And |
Advent Claymore and Pimco Preferred Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Pimco Preferred
The main advantage of trading using opposite Advent Claymore and Pimco Preferred positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Pimco Preferred 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 Pimco Preferred will offset losses from the drop in Pimco Preferred's long position.| Advent Claymore vs. City National Rochdale | ||
| Advent Claymore vs. Buffalo High Yield | ||
| Advent Claymore vs. Prudential High Yield | ||
| Advent Claymore vs. Mesirow Financial High |
| Pimco Preferred vs. Transamerica Financial Life | ||
| Pimco Preferred vs. John Hancock Financial | ||
| Pimco Preferred vs. Financial Industries Fund | ||
| Pimco Preferred vs. Mesirow Financial Small |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |