Correlation Between Ubs Quality and Advent Claymore
Can any of the company-specific risk be diversified away by investing in both Ubs Quality 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 Ubs Quality and Advent Claymore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ubs Quality Growth and Advent Claymore Convertible, you can compare the effects of market volatilities on Ubs Quality 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 Ubs Quality with a short position of Advent Claymore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubs Quality and Advent Claymore.
Diversification Opportunities for Ubs Quality and Advent Claymore
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ubs and Advent is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Ubs Quality Growth 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 Ubs Quality 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 Ubs Quality Growth 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 Ubs Quality i.e., Ubs Quality and Advent Claymore go up and down completely randomly.
Pair Corralation between Ubs Quality and Advent Claymore
Assuming the 90 days horizon Ubs Quality Growth is expected to generate 1.19 times more return on investment than Advent Claymore. However, Ubs Quality is 1.19 times more volatile than Advent Claymore Convertible. It trades about 0.22 of its potential returns per unit of risk. Advent Claymore Convertible is currently generating about 0.23 per unit of risk. If you would invest 1,733 in Ubs Quality Growth on May 29, 2025 and sell it today you would earn a total of 177.00 from holding Ubs Quality Growth or generate 10.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Ubs Quality Growth vs. Advent Claymore Convertible
Performance |
| Timeline |
| Ubs Quality Growth |
| Advent Claymore Conv |
Ubs Quality and Advent Claymore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubs Quality and Advent Claymore
The main advantage of trading using opposite Ubs Quality and Advent Claymore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubs Quality 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.| Ubs Quality vs. Global Resources Fund | Ubs Quality vs. Invesco Energy Fund | Ubs Quality vs. Thrivent Natural Resources | Ubs Quality vs. Goehring Rozencwajg Resources |
| Advent Claymore vs. Nuveen Real Asset | Advent Claymore vs. Guggenheim Active Allocation | Advent Claymore vs. DWS Municipal Income | Advent Claymore vs. Guggenheim Taxable Municipal |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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