Correlation Between Advent Claymore and Rational/pier
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Rational/pier 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 Rational/pier 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 Rationalpier 88 Convertible, you can compare the effects of market volatilities on Advent Claymore and Rational/pier 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 Rational/pier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Rational/pier.
Diversification Opportunities for Advent Claymore and Rational/pier
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Advent and Rational/pier is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Rationalpier 88 Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rationalpier 88 Conv 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 Rational/pier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rationalpier 88 Conv has no effect on the direction of Advent Claymore i.e., Advent Claymore and Rational/pier go up and down completely randomly.
Pair Corralation between Advent Claymore and Rational/pier
Assuming the 90 days horizon Advent Claymore Convertible is expected to generate 1.59 times more return on investment than Rational/pier. However, Advent Claymore is 1.59 times more volatile than Rationalpier 88 Convertible. It trades about 0.29 of its potential returns per unit of risk. Rationalpier 88 Convertible is currently generating about 0.17 per unit of risk. If you would invest 1,115 in Advent Claymore Convertible on April 14, 2025 and sell it today you would earn a total of 162.00 from holding Advent Claymore Convertible or generate 14.53% 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. Rationalpier 88 Convertible
Performance |
| Timeline |
| Advent Claymore Conv |
| Rationalpier 88 Conv |
Advent Claymore and Rational/pier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Rational/pier
The main advantage of trading using opposite Advent Claymore and Rational/pier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Rational/pier 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 Rational/pier will offset losses from the drop in Rational/pier's long position.| Advent Claymore vs. Ab Tax Managed Wealth | Advent Claymore vs. Pnc Emerging Markets | Advent Claymore vs. Rbc Emerging Markets | Advent Claymore vs. Goldman Sachs Emerging |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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