Correlation Between Advent Claymore and Guggenheim Active
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Guggenheim Active 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 Guggenheim Active 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 Guggenheim Active Allocation, you can compare the effects of market volatilities on Advent Claymore and Guggenheim Active 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 Guggenheim Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Guggenheim Active.
Diversification Opportunities for Advent Claymore and Guggenheim Active
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Advent and Guggenheim is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Guggenheim Active Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Active 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 Guggenheim Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Active has no effect on the direction of Advent Claymore i.e., Advent Claymore and Guggenheim Active go up and down completely randomly.
Pair Corralation between Advent Claymore and Guggenheim Active
Considering the 90-day investment horizon Advent Claymore is expected to generate 1.41 times less return on investment than Guggenheim Active. In addition to that, Advent Claymore is 1.02 times more volatile than Guggenheim Active Allocation. It trades about 0.26 of its total potential returns per unit of risk. Guggenheim Active Allocation is currently generating about 0.38 per unit of volatility. If you would invest 1,514 in Guggenheim Active Allocation on June 4, 2025 and sell it today you would earn a total of 64.00 from holding Guggenheim Active Allocation or generate 4.23% 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. Guggenheim Active Allocation
Performance |
| Timeline |
| Advent Claymore Conv |
| Guggenheim Active |
Advent Claymore and Guggenheim Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Guggenheim Active
The main advantage of trading using opposite Advent Claymore and Guggenheim Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Guggenheim Active 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 Guggenheim Active will offset losses from the drop in Guggenheim Active's long position.| Advent Claymore vs. Nuveen Real Asset | Advent Claymore vs. Guggenheim Active Allocation | Advent Claymore vs. DWS Municipal Income | Advent Claymore vs. Guggenheim Taxable Municipal |
| Guggenheim Active vs. Thornburg Income Builder | Guggenheim Active vs. Western Asset Diversified | Guggenheim Active vs. Guggenheim Taxable Municipal | Guggenheim Active vs. Advent Claymore 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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