Correlation Between Ab All and Advent Claymore
Can any of the company-specific risk be diversified away by investing in both Ab All 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 Ab All and Advent Claymore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab All Market and Advent Claymore Convertible, you can compare the effects of market volatilities on Ab All 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 Ab All with a short position of Advent Claymore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab All and Advent Claymore.
Diversification Opportunities for Ab All and Advent Claymore
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AMTOX and Advent is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Ab All Market 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 Ab All 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 Ab All Market 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 Ab All i.e., Ab All and Advent Claymore go up and down completely randomly.
Pair Corralation between Ab All and Advent Claymore
Assuming the 90 days horizon Ab All Market is expected to generate 0.83 times more return on investment than Advent Claymore. However, Ab All Market is 1.21 times less risky than Advent Claymore. It trades about 0.19 of its potential returns per unit of risk. Advent Claymore Convertible is currently generating about 0.15 per unit of risk. If you would invest 927.00 in Ab All Market on May 29, 2025 and sell it today you would earn a total of 56.00 from holding Ab All Market or generate 6.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab All Market vs. Advent Claymore Convertible
Performance |
| Timeline |
| Ab All Market |
| Advent Claymore Conv |
Ab All and Advent Claymore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab All and Advent Claymore
The main advantage of trading using opposite Ab All and Advent Claymore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab All 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.| Ab All vs. Rationalpier 88 Convertible | Ab All vs. Calamos Dynamic Convertible | Ab All vs. The Gamco Global | Ab All vs. Rationalpier 88 Convertible |
| Advent Claymore vs. Fbanjx | Advent Claymore vs. Fabwx | Advent Claymore vs. Ab Select Equity | Advent Claymore vs. Fkhemx |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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