Correlation Between Advent Claymore and Alphacentric Symmetry
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Alphacentric Symmetry 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 Alphacentric Symmetry 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 Alphacentric Symmetry Strategy, you can compare the effects of market volatilities on Advent Claymore and Alphacentric Symmetry 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 Alphacentric Symmetry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Alphacentric Symmetry.
Diversification Opportunities for Advent Claymore and Alphacentric Symmetry
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Advent and Alphacentric is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Alphacentric Symmetry Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphacentric Symmetry 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 Alphacentric Symmetry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphacentric Symmetry has no effect on the direction of Advent Claymore i.e., Advent Claymore and Alphacentric Symmetry go up and down completely randomly.
Pair Corralation between Advent Claymore and Alphacentric Symmetry
Assuming the 90 days horizon Advent Claymore Convertible is expected to generate 1.09 times more return on investment than Alphacentric Symmetry. However, Advent Claymore is 1.09 times more volatile than Alphacentric Symmetry Strategy. It trades about 0.14 of its potential returns per unit of risk. Alphacentric Symmetry Strategy is currently generating about -0.03 per unit of risk. If you would invest 1,232 in Advent Claymore Convertible on October 25, 2024 and sell it today you would earn a total of 16.00 from holding Advent Claymore Convertible or generate 1.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Alphacentric Symmetry Strategy
Performance |
| Timeline |
| Advent Claymore Conv |
| Alphacentric Symmetry |
Advent Claymore and Alphacentric Symmetry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Alphacentric Symmetry
The main advantage of trading using opposite Advent Claymore and Alphacentric Symmetry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Alphacentric Symmetry 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 Alphacentric Symmetry will offset losses from the drop in Alphacentric Symmetry's long position.| Advent Claymore vs. Hewitt Money Market | Advent Claymore vs. Schwab Government Money | Advent Claymore vs. Hsbc Treasury Money | Advent Claymore vs. Dws Government Money |
| Alphacentric Symmetry vs. Virtus Convertible | Alphacentric Symmetry vs. Advent Claymore Convertible | Alphacentric Symmetry vs. Calamos Dynamic Convertible | Alphacentric Symmetry 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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