Correlation Between Advent Claymore and Rbc Impact
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Rbc Impact 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 Rbc Impact 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 Rbc Impact Bond, you can compare the effects of market volatilities on Advent Claymore and Rbc Impact 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 Rbc Impact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Rbc Impact.
Diversification Opportunities for Advent Claymore and Rbc Impact
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Advent and RBC is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Rbc Impact Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rbc Impact Bond 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 Rbc Impact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rbc Impact Bond has no effect on the direction of Advent Claymore i.e., Advent Claymore and Rbc Impact go up and down completely randomly.
Pair Corralation between Advent Claymore and Rbc Impact
Assuming the 90 days horizon Advent Claymore Convertible is expected to generate 1.86 times more return on investment than Rbc Impact. However, Advent Claymore is 1.86 times more volatile than Rbc Impact Bond. It trades about 0.11 of its potential returns per unit of risk. Rbc Impact Bond is currently generating about 0.09 per unit of risk. If you would invest 1,233 in Advent Claymore Convertible on October 26, 2024 and sell it today you would earn a total of 13.00 from holding Advent Claymore Convertible or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Rbc Impact Bond
Performance |
| Timeline |
| Advent Claymore Conv |
| Rbc Impact Bond |
Advent Claymore and Rbc Impact Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Rbc Impact
The main advantage of trading using opposite Advent Claymore and Rbc Impact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Rbc Impact 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 Rbc Impact will offset losses from the drop in Rbc Impact's long position.| Advent Claymore vs. Elfun Government Money | Advent Claymore vs. Us Government Securities | Advent Claymore vs. Lord Abbett Government | Advent Claymore vs. Payden Government Fund |
| Rbc Impact vs. Advent Claymore Convertible | Rbc Impact vs. Columbia Convertible Securities | Rbc Impact vs. Calamos Dynamic Convertible | Rbc Impact vs. Lord Abbett 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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