Correlation Between Cbre Clarion and Advent Claymore

Can any of the company-specific risk be diversified away by investing in both Cbre Clarion and Advent Claymore 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 Cbre Clarion and Advent Claymore into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cbre Clarion Global and Advent Claymore Convertible, you can compare the effects of market volatilities on Cbre Clarion and Advent Claymore 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 Cbre Clarion with a short position of Advent Claymore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cbre Clarion and Advent Claymore.

Diversification Opportunities for Cbre Clarion and Advent Claymore

0.45

Correlation Coefficient

Cbre Clarion  Advent Claymore

Very weak diversification

The 3 months correlation between Cbre and Advent is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Cbre Clarion Global and Advent Claymore Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advent Claymore Conv and Cbre Clarion 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 Cbre Clarion Global are associated (or correlated) with Advent Claymore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advent Claymore Conv has no effect on the direction of Cbre Clarion i.e., Cbre Clarion and Advent Claymore go up and down completely randomly.

Pair Corralation between Cbre Clarion and Advent Claymore

Considering the 90-day investment horizon Cbre Clarion Global is expected to generate 1.55 times more return on investment than Advent Claymore. However, Cbre Clarion is 1.55 times more volatile than Advent Claymore Convertible. It trades about 0.11 of its potential returns per unit of risk. Advent Claymore Convertible is currently generating about 0.06 per unit of risk. If you would invest  480.00  in Cbre Clarion Global on December 27, 2024 and sell it today you would earn a total of  35.00  from holding Cbre Clarion Global or generate 7.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Cbre Clarion Global  vs.  Advent Claymore Convertible

Cbre Clarion Global

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Cbre Clarion Global are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. Even with relatively unsteady technical and fundamental indicators, Cbre Clarion may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Advent Claymore Conv

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Advent Claymore Convertible are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. 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.

Pair Trading with Cbre Clarion and Advent Claymore

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

The idea behind Cbre Clarion Global and Advent Claymore Convertible 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.

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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.