Correlation Between Advent Claymore and Dunham Floating
Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Dunham Floating 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 Dunham Floating 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 Dunham Floating Rate, you can compare the effects of market volatilities on Advent Claymore and Dunham Floating 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 Dunham Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Dunham Floating.
Diversification Opportunities for Advent Claymore and Dunham Floating
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Advent and Dunham is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Dunham Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Floating Rate 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 Dunham Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Floating Rate has no effect on the direction of Advent Claymore i.e., Advent Claymore and Dunham Floating go up and down completely randomly.
Pair Corralation between Advent Claymore and Dunham Floating
Considering the 90-day investment horizon Advent Claymore Convertible is expected to generate 9.59 times more return on investment than Dunham Floating. However, Advent Claymore is 9.59 times more volatile than Dunham Floating Rate. It trades about 0.14 of its potential returns per unit of risk. Dunham Floating Rate is currently generating about 0.33 per unit of risk. If you would invest 931.00 in Advent Claymore Convertible on September 14, 2024 and sell it today you would earn a total of 317.00 from holding Advent Claymore Convertible or generate 34.05% 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. Dunham Floating Rate
Performance |
Timeline |
Advent Claymore Conv |
Dunham Floating Rate |
Advent Claymore and Dunham Floating Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Advent Claymore and Dunham Floating
The main advantage of trading using opposite Advent Claymore and Dunham Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Dunham Floating 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 Dunham Floating will offset losses from the drop in Dunham Floating's long position.Advent Claymore vs. Nuveen Global High | Advent Claymore vs. Blackstone Gso Strategic | Advent Claymore vs. Thornburg Income Builder | Advent Claymore vs. Western Asset Diversified |
Dunham Floating vs. Dunham Dynamic Macro | Dunham Floating vs. Dunham Appreciation Income | Dunham Floating vs. Dunham Porategovernment Bond | Dunham Floating vs. Dunham Small Cap |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |