Correlation Between Advent Claymore and Prudential Real
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Prudential Real 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 Prudential Real 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 Prudential Real Estate, you can compare the effects of market volatilities on Advent Claymore and Prudential Real 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 Prudential Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Prudential Real.
Diversification Opportunities for Advent Claymore and Prudential Real
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Advent and Prudential is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Prudential Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prudential Real Estate 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 Prudential Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prudential Real Estate has no effect on the direction of Advent Claymore i.e., Advent Claymore and Prudential Real go up and down completely randomly.
Pair Corralation between Advent Claymore and Prudential Real
Assuming the 90 days horizon Advent Claymore Convertible is expected to generate 0.7 times more return on investment than Prudential Real. However, Advent Claymore Convertible is 1.44 times less risky than Prudential Real. It trades about 0.16 of its potential returns per unit of risk. Prudential Real Estate is currently generating about 0.06 per unit of risk. If you would invest 1,195 in Advent Claymore Convertible on May 23, 2025 and sell it today you would earn a total of 71.00 from holding Advent Claymore Convertible or generate 5.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Prudential Real Estate
Performance |
| Timeline |
| Advent Claymore Conv |
| Prudential Real Estate |
Advent Claymore and Prudential Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Prudential Real
The main advantage of trading using opposite Advent Claymore and Prudential Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Prudential Real 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 Prudential Real will offset losses from the drop in Prudential Real's long position.| Advent Claymore vs. Allianzgi Convertible Income | Advent Claymore vs. Calamos Dynamic Convertible | Advent Claymore vs. Gabelli Convertible And | Advent Claymore vs. Fidelity Sai Convertible |
| Prudential Real vs. Ab Bond Inflation | Prudential Real vs. Barings Active Short | Prudential Real vs. Touchstone Ultra Short | Prudential Real vs. Rbc Short Duration |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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