Correlation Between Advent Claymore and Dimensional 2055
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Dimensional 2055 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 Dimensional 2055 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 Dimensional 2055 Target, you can compare the effects of market volatilities on Advent Claymore and Dimensional 2055 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 Dimensional 2055. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Dimensional 2055.
Diversification Opportunities for Advent Claymore and Dimensional 2055
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advent and Dimensional is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Dimensional 2055 Target in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dimensional 2055 Target 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 Dimensional 2055. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dimensional 2055 Target has no effect on the direction of Advent Claymore i.e., Advent Claymore and Dimensional 2055 go up and down completely randomly.
Pair Corralation between Advent Claymore and Dimensional 2055
Assuming the 90 days horizon Advent Claymore is expected to generate 1.02 times less return on investment than Dimensional 2055. In addition to that, Advent Claymore is 1.02 times more volatile than Dimensional 2055 Target. It trades about 0.3 of its total potential returns per unit of risk. Dimensional 2055 Target is currently generating about 0.31 per unit of volatility. If you would invest 1,841 in Dimensional 2055 Target on April 15, 2025 and sell it today you would earn a total of 281.00 from holding Dimensional 2055 Target or generate 15.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Dimensional 2055 Target
Performance |
| Timeline |
| Advent Claymore Conv |
| Dimensional 2055 Target |
Advent Claymore and Dimensional 2055 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Dimensional 2055
The main advantage of trading using opposite Advent Claymore and Dimensional 2055 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Dimensional 2055 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 Dimensional 2055 will offset losses from the drop in Dimensional 2055's long position.| Advent Claymore vs. Eagle Small Cap | Advent Claymore vs. Goldman Sachs Small | Advent Claymore vs. Needham Small Cap | Advent Claymore vs. Ab Small Cap |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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