Correlation Between Advent Claymore and Guidepath Income
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Guidepath Income 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 Guidepath Income 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 Guidepath Income, you can compare the effects of market volatilities on Advent Claymore and Guidepath Income 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 Guidepath Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Guidepath Income.
Diversification Opportunities for Advent Claymore and Guidepath Income
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advent and Guidepath is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Guidepath Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidepath Income 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 Guidepath Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidepath Income has no effect on the direction of Advent Claymore i.e., Advent Claymore and Guidepath Income go up and down completely randomly.
Pair Corralation between Advent Claymore and Guidepath Income
Assuming the 90 days horizon Advent Claymore Convertible is expected to generate 2.16 times more return on investment than Guidepath Income. However, Advent Claymore is 2.16 times more volatile than Guidepath Income. It trades about 0.25 of its potential returns per unit of risk. Guidepath Income is currently generating about -0.05 per unit of risk. If you would invest 1,249 in Advent Claymore Convertible on April 27, 2025 and sell it today you would earn a total of 32.00 from holding Advent Claymore Convertible or generate 2.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Guidepath Income
Performance |
| Timeline |
| Advent Claymore Conv |
| Guidepath Income |
Advent Claymore and Guidepath Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Guidepath Income
The main advantage of trading using opposite Advent Claymore and Guidepath Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Guidepath Income 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 Guidepath Income will offset losses from the drop in Guidepath Income's long position.| Advent Claymore vs. Highland Longshort Healthcare | Advent Claymore vs. Alger Health Sciences | Advent Claymore vs. Vanguard Health Care | Advent Claymore vs. Tekla Healthcare Investors |
| Guidepath Income vs. Pender Real Estate | Guidepath Income vs. Commonwealth Real Estate | Guidepath Income vs. Fidelity Real Estate | Guidepath Income vs. Prudential Real Estate |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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