Correlation Between Advent Claymore and Pnc International
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Pnc International 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 Pnc International 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 Pnc International Growth, you can compare the effects of market volatilities on Advent Claymore and Pnc International 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 Pnc International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Pnc International.
Diversification Opportunities for Advent Claymore and Pnc International
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Advent and Pnc is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Pnc International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pnc International 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 Pnc International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pnc International Growth has no effect on the direction of Advent Claymore i.e., Advent Claymore and Pnc International go up and down completely randomly.
Pair Corralation between Advent Claymore and Pnc International
Assuming the 90 days horizon Advent Claymore Convertible is expected to generate 1.1 times more return on investment than Pnc International. However, Advent Claymore is 1.1 times more volatile than Pnc International Growth. It trades about 0.31 of its potential returns per unit of risk. Pnc International Growth is currently generating about 0.31 per unit of risk. If you would invest 1,106 in Advent Claymore Convertible on April 17, 2025 and sell it today you would earn a total of 168.00 from holding Advent Claymore Convertible or generate 15.19% 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. Pnc International Growth
Performance |
| Timeline |
| Advent Claymore Conv |
| Pnc International Growth |
Advent Claymore and Pnc International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Pnc International
The main advantage of trading using opposite Advent Claymore and Pnc International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Pnc International 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 Pnc International will offset losses from the drop in Pnc International's long position.| Advent Claymore vs. Sterling Capital Stratton | Advent Claymore vs. Fidelity Real Estate | Advent Claymore vs. Prudential Real Estate | Advent Claymore vs. Franklin Real Estate |
| Pnc International vs. Manning Napier Overseas | Pnc International vs. Focused International Growth | Pnc International vs. Fidelity Advisor Overseas | Pnc International vs. Ab Centrated International |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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