Correlation Between Amg Managers and Advent Claymore
Can any of the company-specific risk be diversified away by investing in both Amg Managers 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 Amg Managers and Advent Claymore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Managers Centersquare and Advent Claymore Convertible, you can compare the effects of market volatilities on Amg Managers 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 Amg Managers with a short position of Advent Claymore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Advent Claymore.
Diversification Opportunities for Amg Managers and Advent Claymore
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amg and Advent is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare 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 Amg Managers 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 Amg Managers Centersquare 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 Amg Managers i.e., Amg Managers and Advent Claymore go up and down completely randomly.
Pair Corralation between Amg Managers and Advent Claymore
Assuming the 90 days horizon Amg Managers is expected to generate 1.7 times less return on investment than Advent Claymore. In addition to that, Amg Managers is 1.51 times more volatile than Advent Claymore Convertible. It trades about 0.02 of its total potential returns per unit of risk. Advent Claymore Convertible is currently generating about 0.06 per unit of volatility. If you would invest 1,146 in Advent Claymore Convertible on December 27, 2024 and sell it today you would earn a total of 29.00 from holding Advent Claymore Convertible or generate 2.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Amg Managers Centersquare vs. Advent Claymore Convertible
Performance |
Timeline |
Amg Managers Centersquare |
Advent Claymore Conv |
Amg Managers and Advent Claymore Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amg Managers and Advent Claymore
The main advantage of trading using opposite Amg Managers and Advent Claymore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers 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.Amg Managers vs. Invesco Real Estate | Amg Managers vs. Short Real Estate | Amg Managers vs. Real Estate Ultrasector | Amg Managers vs. Jhancock Real Estate |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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