Correlation Between Advent Claymore and Enhanced Fixed
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Enhanced Fixed 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 Enhanced Fixed 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 Enhanced Fixed Income, you can compare the effects of market volatilities on Advent Claymore and Enhanced Fixed 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 Enhanced Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Enhanced Fixed.
Diversification Opportunities for Advent Claymore and Enhanced Fixed
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Advent and Enhanced is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Enhanced Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enhanced Fixed Income 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 Enhanced Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enhanced Fixed Income has no effect on the direction of Advent Claymore i.e., Advent Claymore and Enhanced Fixed go up and down completely randomly.
Pair Corralation between Advent Claymore and Enhanced Fixed
Assuming the 90 days horizon Advent Claymore Convertible is expected to generate 2.29 times more return on investment than Enhanced Fixed. However, Advent Claymore is 2.29 times more volatile than Enhanced Fixed Income. It trades about 0.3 of its potential returns per unit of risk. Enhanced Fixed Income is currently generating about 0.23 per unit of risk. If you would invest 1,107 in Advent Claymore Convertible on April 15, 2025 and sell it today you would earn a total of 163.00 from holding Advent Claymore Convertible or generate 14.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Enhanced Fixed Income
Performance |
| Timeline |
| Advent Claymore Conv |
| Enhanced Fixed Income |
Advent Claymore and Enhanced Fixed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Enhanced Fixed
The main advantage of trading using opposite Advent Claymore and Enhanced Fixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Enhanced Fixed 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 Enhanced Fixed will offset losses from the drop in Enhanced Fixed's long position.| Advent Claymore vs. Financial Industries Fund | Advent Claymore vs. Vanguard Financials Index | Advent Claymore vs. Gabelli Global Financial | Advent Claymore vs. Fidelity Advisor Financial |
| Enhanced Fixed vs. Leader Short Term Bond | Enhanced Fixed vs. Bbh Intermediate Municipal | Enhanced Fixed vs. Bts Tactical Fixed | Enhanced Fixed vs. Flexible Bond Portfolio |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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