Correlation Between Advent Claymore and Rbc Short
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Rbc Short 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 Short 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 Short Duration, you can compare the effects of market volatilities on Advent Claymore and Rbc Short 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 Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Rbc Short.
Diversification Opportunities for Advent Claymore and Rbc Short
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advent and Rbc is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Rbc Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rbc Short Duration 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 Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rbc Short Duration has no effect on the direction of Advent Claymore i.e., Advent Claymore and Rbc Short go up and down completely randomly.
Pair Corralation between Advent Claymore and Rbc Short
Assuming the 90 days horizon Advent Claymore Convertible is expected to under-perform the Rbc Short. In addition to that, Advent Claymore is 4.91 times more volatile than Rbc Short Duration. It trades about -0.01 of its total potential returns per unit of risk. Rbc Short Duration is currently generating about 0.15 per unit of volatility. If you would invest 877.00 in Rbc Short Duration on October 11, 2024 and sell it today you would earn a total of 96.00 from holding Rbc Short Duration or generate 10.95% 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. Rbc Short Duration
Performance |
| Timeline |
| Advent Claymore Conv |
| Rbc Short Duration |
Advent Claymore and Rbc Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Rbc Short
The main advantage of trading using opposite Advent Claymore and Rbc Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Rbc Short 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 Short will offset losses from the drop in Rbc Short's long position.| Advent Claymore vs. Rbc Short Duration | Advent Claymore vs. Lord Abbett Short | Advent Claymore vs. Ultra Short Fixed Income | Advent Claymore vs. Aamhimco Short Duration |
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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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