Correlation Between Advent Claymore and Gold And

Can any of the company-specific risk be diversified away by investing in both Advent Claymore and Gold And 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 Gold And 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 Gold And Precious, you can compare the effects of market volatilities on Advent Claymore and Gold And 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 Gold And. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Gold And.

Diversification Opportunities for Advent Claymore and Gold And

0.79

Correlation Coefficient

Advent Claymore  Gold And

Poor diversification

The 3 months correlation between Advent and Gold is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Gold And Precious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold And Precious 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 Gold And. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold And Precious has no effect on the direction of Advent Claymore i.e., Advent Claymore and Gold And go up and down completely randomly.

Pair Corralation between Advent Claymore and Gold And

Considering the 90-day investment horizon Advent Claymore is expected to generate 1.05 times less return on investment than Gold And. But when comparing it to its historical volatility, Advent Claymore Convertible is 1.73 times less risky than Gold And. It trades about 0.08 of its potential returns per unit of risk. Gold And Precious is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  985.00  in Gold And Precious on December 7, 2024 and sell it today you would earn a total of  368.00  from holding Gold And Precious or generate 37.36% 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.  Gold And Precious

Advent Claymore Conv

Risk-Adjusted Performance

Very Weak

Over the last 90 days Advent Claymore Convertible has generated negative risk-adjusted returns adding no value to fund investors. Despite quite persistent basic indicators, Advent Claymore is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Gold And Precious

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Gold And Precious are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Gold And may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Advent Claymore and Gold And

The main advantage of trading using opposite Advent Claymore and Gold And positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore position performs unexpectedly, Gold And 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 Gold And will offset losses from the drop in Gold And's long position.

The idea behind Advent Claymore Convertible and Gold And Precious pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.