Correlation Between Advent Claymore and Federated Hermes
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Federated Hermes 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 Federated Hermes 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 Federated Hermes Inflation, you can compare the effects of market volatilities on Advent Claymore and Federated Hermes 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 Federated Hermes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Federated Hermes.
Diversification Opportunities for Advent Claymore and Federated Hermes
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Advent and Federated is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Federated Hermes Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Hermes Inf 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 Federated Hermes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Hermes Inf has no effect on the direction of Advent Claymore i.e., Advent Claymore and Federated Hermes go up and down completely randomly.
Pair Corralation between Advent Claymore and Federated Hermes
Assuming the 90 days horizon Advent Claymore Convertible is expected to generate 2.22 times more return on investment than Federated Hermes. However, Advent Claymore is 2.22 times more volatile than Federated Hermes Inflation. It trades about 0.17 of its potential returns per unit of risk. Federated Hermes Inflation is currently generating about 0.18 per unit of risk. If you would invest 1,212 in Advent Claymore Convertible on June 2, 2025 and sell it today you would earn a total of 77.00 from holding Advent Claymore Convertible or generate 6.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Federated Hermes Inflation
Performance |
| Timeline |
| Advent Claymore Conv |
| Federated Hermes Inf |
Advent Claymore and Federated Hermes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Federated Hermes
The main advantage of trading using opposite Advent Claymore and Federated Hermes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Federated Hermes 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 Federated Hermes will offset losses from the drop in Federated Hermes' 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 |
| Federated Hermes vs. Balanced Fund Retail | Federated Hermes vs. Rbc Microcap Value | Federated Hermes vs. Rbb Fund | Federated Hermes vs. T Rowe Price |
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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