Correlation Between Advent Claymore and Ab International
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Ab International 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 International 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 International Growth, you can compare the effects of market volatilities on Advent Claymore and Ab International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Ab International.
Diversification Opportunities for Advent Claymore and Ab International
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Advent and AWPYX is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Ab International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab International Growth 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 International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab International Growth has no effect on the direction of Advent Claymore i.e., Advent Claymore and Ab International go up and down completely randomly.
Pair Corralation between Advent Claymore and Ab International
Assuming the 90 days horizon Advent Claymore Convertible is expected to generate 0.83 times more return on investment than Ab International. However, Advent Claymore Convertible is 1.2 times less risky than Ab International. It trades about 0.12 of its potential returns per unit of risk. Ab International Growth is currently generating about 0.06 per unit of risk. If you would invest 1,212 in Advent Claymore Convertible on May 25, 2025 and sell it today you would earn a total of 52.00 from holding Advent Claymore Convertible or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Ab International Growth
Performance |
| Timeline |
| Advent Claymore Conv |
| Ab International Growth |
Advent Claymore and Ab International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Ab International
The main advantage of trading using opposite Advent Claymore and Ab International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Ab International 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 International will offset losses from the drop in Ab International's long position.| Advent Claymore vs. Prudential High Yield | Advent Claymore vs. Transamerica High Yield | Advent Claymore vs. Strategic Advisers Income | Advent Claymore vs. Prudential High Yield |
| Ab International vs. Goldman Sachs Bond | Ab International vs. Ab Bond Inflation | Ab International vs. Ab Bond Inflation | Ab International vs. Payden 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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