Correlation Between Advent Claymore and Gamco Global
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Gamco Global 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 Gamco Global 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 Gamco Global Growth, you can compare the effects of market volatilities on Advent Claymore and Gamco Global 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 Gamco Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Gamco Global.
Diversification Opportunities for Advent Claymore and Gamco Global
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Advent and GAMCO is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Gamco Global Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamco Global 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 Gamco Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamco Global Growth has no effect on the direction of Advent Claymore i.e., Advent Claymore and Gamco Global go up and down completely randomly.
Pair Corralation between Advent Claymore and Gamco Global
Assuming the 90 days horizon Advent Claymore is expected to generate 1.28 times less return on investment than Gamco Global. But when comparing it to its historical volatility, Advent Claymore Convertible is 1.48 times less risky than Gamco Global. It trades about 0.29 of its potential returns per unit of risk. Gamco Global Growth is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 4,114 in Gamco Global Growth on April 6, 2025 and sell it today you would earn a total of 973.00 from holding Gamco Global Growth or generate 23.65% 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. Gamco Global Growth
Performance |
| Timeline |
| Advent Claymore Conv |
| Gamco Global Growth |
Advent Claymore and Gamco Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Gamco Global
The main advantage of trading using opposite Advent Claymore and Gamco Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Gamco Global 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 Gamco Global will offset losses from the drop in Gamco Global'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 |
| Gamco Global vs. Chartwell Short Duration | Gamco Global vs. Diamond Hill Long Short | Gamco Global vs. Nuveen Equity Longshort | Gamco Global vs. Calamos Longshort 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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