Correlation Between Ab Tax-managed and Advent Claymore
Can any of the company-specific risk be diversified away by investing in both Ab Tax-managed 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 Tax-managed 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 Tax Managed Wealth and Advent Claymore Convertible, you can compare the effects of market volatilities on Ab Tax-managed 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 Tax-managed with a short position of Advent Claymore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Tax-managed and Advent Claymore.
Diversification Opportunities for Ab Tax-managed and Advent Claymore
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ATWAX and Advent is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ab Tax Managed Wealth 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 Tax-managed 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 Tax Managed Wealth 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 Tax-managed i.e., Ab Tax-managed and Advent Claymore go up and down completely randomly.
Pair Corralation between Ab Tax-managed and Advent Claymore
Assuming the 90 days horizon Ab Tax Managed Wealth is expected to generate 1.02 times more return on investment than Advent Claymore. However, Ab Tax-managed is 1.02 times more volatile than Advent Claymore Convertible. It trades about 0.36 of its potential returns per unit of risk. Advent Claymore Convertible is currently generating about 0.25 per unit of risk. If you would invest 2,136 in Ab Tax Managed Wealth on April 26, 2025 and sell it today you would earn a total of 352.00 from holding Ab Tax Managed Wealth or generate 16.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Tax Managed Wealth vs. Advent Claymore Convertible
Performance |
| Timeline |
| Ab Tax Managed |
| Advent Claymore Conv |
Ab Tax-managed and Advent Claymore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Tax-managed and Advent Claymore
The main advantage of trading using opposite Ab Tax-managed and Advent Claymore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Tax-managed 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 Tax-managed vs. Federated Emerging Market | Ab Tax-managed vs. Gmo Emerging Markets | Ab Tax-managed vs. Mondrian Emerging Markets | Ab Tax-managed vs. Transamerica Emerging Markets |
| Advent Claymore vs. Vanguard Total Stock | Advent Claymore vs. Vanguard 500 Index | Advent Claymore vs. Vanguard Total Stock | Advent Claymore vs. Vanguard Total Stock |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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