Correlation Between Nuveen Short and Advent Claymore

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

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

Diversification Opportunities for Nuveen Short and Advent Claymore

0.46

Correlation Coefficient

Nuveen Short  Advent Claymore

Very weak diversification

The 3 months correlation between Nuveen and Advent is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Short Duration 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 Nuveen Short 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 Nuveen Short Duration 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 Nuveen Short i.e., Nuveen Short and Advent Claymore go up and down completely randomly.

Pair Corralation between Nuveen Short and Advent Claymore

If you would invest  1,148  in Advent Claymore Convertible on September 4, 2024 and sell it today you would earn a total of  72.00  from holding Advent Claymore Convertible or generate 6.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.59%
Values	Daily Returns

Nuveen Short Duration  vs.  Advent Claymore Convertible

Nuveen Short Duration

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nuveen Short Duration has generated negative risk-adjusted returns adding no value to fund investors. In spite of rather sound basic indicators, Nuveen Short is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Advent Claymore Conv

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Advent Claymore Convertible are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. Despite quite unsteady basic indicators, Advent Claymore may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Nuveen Short and Advent Claymore

The main advantage of trading using opposite Nuveen Short and Advent Claymore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Short 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 Nuveen Short Duration 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.