Correlation Between Advent Claymore and Aqr Diversified
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Aqr 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 Aqr 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 Aqr Diversified Arbitrage, you can compare the effects of market volatilities on Advent Claymore and Aqr 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 Aqr Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Aqr Diversified.
Diversification Opportunities for Advent Claymore and Aqr Diversified
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Advent and Aqr is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Aqr Diversified Arbitrage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Diversified Arbitrage 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 Aqr Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Diversified Arbitrage has no effect on the direction of Advent Claymore i.e., Advent Claymore and Aqr Diversified go up and down completely randomly.
Pair Corralation between Advent Claymore and Aqr Diversified
Assuming the 90 days horizon Advent Claymore is expected to generate 3.41 times less return on investment than Aqr Diversified. In addition to that, Advent Claymore is 5.71 times more volatile than Aqr Diversified Arbitrage. It trades about 0.01 of its total potential returns per unit of risk. Aqr Diversified Arbitrage is currently generating about 0.14 per unit of volatility. If you would invest 1,169 in Aqr Diversified Arbitrage on November 3, 2024 and sell it today you would earn a total of 49.00 from holding Aqr Diversified Arbitrage or generate 4.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Aqr Diversified Arbitrage
Performance |
| Timeline |
| Advent Claymore Conv |
| Aqr Diversified Arbitrage |
Advent Claymore and Aqr Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Aqr Diversified
The main advantage of trading using opposite Advent Claymore and Aqr Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Aqr 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 Aqr Diversified will offset losses from the drop in Aqr Diversified'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 |
| Aqr Diversified vs. Gabelli Convertible And | Aqr Diversified vs. Rationalpier 88 Convertible | Aqr Diversified vs. Fidelity Sai Convertible | Aqr Diversified vs. Allianzgi Convertible Income |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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