Correlation Between Advent Claymore and Allianzgi Convertible
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Allianzgi Convertible 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 Allianzgi Convertible 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 Allianzgi Convertible Income, you can compare the effects of market volatilities on Advent Claymore and Allianzgi Convertible 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 Allianzgi Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Allianzgi Convertible.
Diversification Opportunities for Advent Claymore and Allianzgi Convertible
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Advent and Allianzgi is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Allianzgi Convertible Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Convertible 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 Allianzgi Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Convertible has no effect on the direction of Advent Claymore i.e., Advent Claymore and Allianzgi Convertible go up and down completely randomly.
Pair Corralation between Advent Claymore and Allianzgi Convertible
Assuming the 90 days horizon Advent Claymore Convertible is expected to under-perform the Allianzgi Convertible. But the mutual fund apears to be less risky and, when comparing its historical volatility, Advent Claymore Convertible is 1.47 times less risky than Allianzgi Convertible. The mutual fund trades about -0.04 of its potential returns per unit of risk. The Allianzgi Convertible Income is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,313 in Allianzgi Convertible Income on August 28, 2025 and sell it today you would earn a total of 56.00 from holding Allianzgi Convertible Income or generate 4.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Allianzgi Convertible Income
Performance |
| Timeline |
| Advent Claymore Conv |
| Allianzgi Convertible |
Advent Claymore and Allianzgi Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Allianzgi Convertible
The main advantage of trading using opposite Advent Claymore and Allianzgi Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Allianzgi Convertible 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 Allianzgi Convertible will offset losses from the drop in Allianzgi Convertible's long position.| Advent Claymore vs. Forum Real Estate | Advent Claymore vs. Virtus Real Estate | Advent Claymore vs. Prudential Real Estate | Advent Claymore vs. Tiaa Cref Real Estate |
| Allianzgi Convertible vs. Ab Municipal Bond | Allianzgi Convertible vs. Aqr Managed Futures | Allianzgi Convertible vs. Arrow Managed Futures | Allianzgi Convertible vs. Ab Municipal Bond |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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