Correlation Between Bbh Intermediate and Advent Claymore
Can any of the company-specific risk be diversified away by investing in both Bbh Intermediate 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 Bbh Intermediate and Advent Claymore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bbh Intermediate Municipal and Advent Claymore Convertible, you can compare the effects of market volatilities on Bbh Intermediate 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 Bbh Intermediate with a short position of Advent Claymore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Intermediate and Advent Claymore.
Diversification Opportunities for Bbh Intermediate and Advent Claymore
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bbh and Advent is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Intermediate Municipal 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 Bbh Intermediate 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 Bbh Intermediate Municipal 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 Bbh Intermediate i.e., Bbh Intermediate and Advent Claymore go up and down completely randomly.
Pair Corralation between Bbh Intermediate and Advent Claymore
Assuming the 90 days horizon Bbh Intermediate is expected to generate 17.12 times less return on investment than Advent Claymore. But when comparing it to its historical volatility, Bbh Intermediate Municipal is 5.99 times less risky than Advent Claymore. It trades about 0.09 of its potential returns per unit of risk. Advent Claymore Convertible is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,159 in Advent Claymore Convertible on April 30, 2025 and sell it today you would earn a total of 123.00 from holding Advent Claymore Convertible or generate 10.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bbh Intermediate Municipal vs. Advent Claymore Convertible
Performance |
| Timeline |
| Bbh Intermediate Mun |
| Advent Claymore Conv |
Bbh Intermediate and Advent Claymore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bbh Intermediate and Advent Claymore
The main advantage of trading using opposite Bbh Intermediate and Advent Claymore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Intermediate 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.| Bbh Intermediate vs. Gmo Global Equity | Bbh Intermediate vs. Jhancock Global Equity | Bbh Intermediate vs. Templeton Global Balanced | Bbh Intermediate vs. Asg Global Alternatives |
| Advent Claymore vs. Rbc Emerging Markets | Advent Claymore vs. Seafarer Overseas Growth | Advent Claymore vs. Pace International Emerging | Advent Claymore vs. Aqr Tm Emerging |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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