Correlation Between Advent Claymore and Ab Select
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Ab Select 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 Ab Select 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 Ab Select Longshort, you can compare the effects of market volatilities on Advent Claymore and Ab Select 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 Ab Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Ab Select.
Diversification Opportunities for Advent Claymore and Ab Select
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Advent and ASCLX is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Ab Select Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Select Longshort 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 Ab Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Select Longshort has no effect on the direction of Advent Claymore i.e., Advent Claymore and Ab Select go up and down completely randomly.
Pair Corralation between Advent Claymore and Ab Select
Assuming the 90 days horizon Advent Claymore Convertible is expected to generate 2.2 times more return on investment than Ab Select. However, Advent Claymore is 2.2 times more volatile than Ab Select Longshort. It trades about 0.24 of its potential returns per unit of risk. Ab Select Longshort is currently generating about 0.33 per unit of risk. If you would invest 1,162 in Advent Claymore Convertible on April 29, 2025 and sell it today you would earn a total of 120.00 from holding Advent Claymore Convertible or generate 10.33% 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. Ab Select Longshort
Performance |
| Timeline |
| Advent Claymore Conv |
| Ab Select Longshort |
Advent Claymore and Ab Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Ab Select
The main advantage of trading using opposite Advent Claymore and Ab Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Ab Select 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 Ab Select will offset losses from the drop in Ab Select's long position.| Advent Claymore vs. Ab Bond Inflation | Advent Claymore vs. Great West Inflation Protected Securities | Advent Claymore vs. Guggenheim Managed Futures | Advent Claymore vs. Vy Blackrock Inflation |
| Ab Select vs. Johcm Emerging Markets | Ab Select vs. Balanced Strategy Fund | Ab Select vs. Nasdaq 100 2x Strategy | Ab Select vs. Rbc Emerging Markets |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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