Correlation Between XRP and Advent Claymore
Can any of the company-specific risk be diversified away by investing in both XRP and Advent Claymore 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 XRP and Advent Claymore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XRP and Advent Claymore Convertible, you can compare the effects of market volatilities on XRP and Advent Claymore 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 XRP with a short position of Advent Claymore. Check out your portfolio center. Please also check ongoing floating volatility patterns of XRP and Advent Claymore.
Diversification Opportunities for XRP and Advent Claymore
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XRP and Advent is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding XRP and Advent Claymore Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advent Claymore Conv and XRP 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 XRP are associated (or correlated) with Advent Claymore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advent Claymore Conv has no effect on the direction of XRP i.e., XRP and Advent Claymore go up and down completely randomly.
Pair Corralation between XRP and Advent Claymore
Assuming the 90 days trading horizon XRP is expected to generate 6.99 times more return on investment than Advent Claymore. However, XRP is 6.99 times more volatile than Advent Claymore Convertible. It trades about 0.03 of its potential returns per unit of risk. Advent Claymore Convertible is currently generating about -0.18 per unit of risk. If you would invest 237.00 in XRP on October 10, 2024 and sell it today you would earn a total of 1.00 from holding XRP or generate 0.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
XRP vs. Advent Claymore Convertible
Performance |
| Timeline |
| XRP |
| Advent Claymore Conv |
XRP and Advent Claymore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XRP and Advent Claymore
The main advantage of trading using opposite XRP and Advent Claymore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XRP position performs unexpectedly, Advent Claymore 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 Advent Claymore will offset losses from the drop in Advent Claymore's long position.The idea behind XRP and Advent Claymore Convertible pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |