Correlation Between Advent Claymore and Mfs Value
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Mfs Value 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 Mfs Value 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 Mfs Value 529, you can compare the effects of market volatilities on Advent Claymore and Mfs Value 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 Mfs Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Mfs Value.
Diversification Opportunities for Advent Claymore and Mfs Value
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advent and Mfs is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Mfs Value 529 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Value 529 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 Mfs Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Value 529 has no effect on the direction of Advent Claymore i.e., Advent Claymore and Mfs Value go up and down completely randomly.
Pair Corralation between Advent Claymore and Mfs Value
Assuming the 90 days horizon Advent Claymore Convertible is expected to generate 1.02 times more return on investment than Mfs Value. However, Advent Claymore is 1.02 times more volatile than Mfs Value 529. It trades about 0.16 of its potential returns per unit of risk. Mfs Value 529 is currently generating about 0.16 per unit of risk. If you would invest 1,212 in Advent Claymore Convertible on May 26, 2025 and sell it today you would earn a total of 72.00 from holding Advent Claymore Convertible or generate 5.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Mfs Value 529
Performance |
| Timeline |
| Advent Claymore Conv |
| Mfs Value 529 |
Advent Claymore and Mfs Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Mfs Value
The main advantage of trading using opposite Advent Claymore and Mfs Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Mfs Value 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 Mfs Value will offset losses from the drop in Mfs Value's long position.| Advent Claymore vs. Vanguard Total Stock | Advent Claymore vs. Vanguard 500 Index | Advent Claymore vs. Vanguard Total Stock | Advent Claymore vs. Vanguard Total Stock |
| Mfs Value vs. Stone Ridge Diversified | Mfs Value vs. Putnam Diversified Income | Mfs Value vs. Invesco Diversified Dividend | Mfs Value vs. Elfun Diversified Fund |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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