Correlation Between Advent Claymore and Invesco Global
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Invesco 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 Invesco 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 Invesco Global Health, you can compare the effects of market volatilities on Advent Claymore and Invesco 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 Invesco Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Invesco Global.
Diversification Opportunities for Advent Claymore and Invesco Global
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advent and Invesco is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Invesco Global Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Global Health 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 Invesco Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Global Health has no effect on the direction of Advent Claymore i.e., Advent Claymore and Invesco Global go up and down completely randomly.
Pair Corralation between Advent Claymore and Invesco Global
Assuming the 90 days horizon Advent Claymore is expected to generate 1.13 times less return on investment than Invesco Global. But when comparing it to its historical volatility, Advent Claymore Convertible is 1.21 times less risky than Invesco Global. It trades about 0.14 of its potential returns per unit of risk. Invesco Global Health is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,742 in Invesco Global Health on June 12, 2025 and sell it today you would earn a total of 98.00 from holding Invesco Global Health or generate 5.63% 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. Invesco Global Health
Performance |
| Timeline |
| Advent Claymore Conv |
| Invesco Global Health |
Advent Claymore and Invesco Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Invesco Global
The main advantage of trading using opposite Advent Claymore and Invesco Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Invesco 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 Invesco Global will offset losses from the drop in Invesco Global's long position.| Advent Claymore vs. Fidelity Advisor Energy | Advent Claymore vs. Jennison Natural Resources | Advent Claymore vs. Ivy Natural Resources | Advent Claymore vs. Gmo Resources |
| Invesco Global vs. Vanguard Health Care | Invesco Global vs. Vanguard Health Care | Invesco Global vs. T Rowe Price | Invesco Global 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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