Correlation Between Simt Multi-asset and Advent Claymore

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

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

Diversification Opportunities for Simt Multi-asset and Advent Claymore

0.14

Correlation Coefficient

Simt Multi-asset  Advent Claymore

Average diversification

The 3 months correlation between Simt and Advent is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Inflation 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 Simt Multi-asset 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 Simt Multi Asset Inflation 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 Simt Multi-asset i.e., Simt Multi-asset and Advent Claymore go up and down completely randomly.

Pair Corralation between Simt Multi-asset and Advent Claymore

Assuming the 90 days horizon Simt Multi-asset is expected to generate 39.17 times less return on investment than Advent Claymore. But when comparing it to its historical volatility, Simt Multi Asset Inflation is 2.94 times less risky than Advent Claymore. It trades about 0.02 of its potential returns per unit of risk. Advent Claymore Convertible is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest  1,091  in Advent Claymore Convertible on April 20, 2025 and sell it today you would earn a total of  178.00  from holding Advent Claymore Convertible or generate 16.32% return on investment over 90 days.

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

Simt Multi Asset Inflation  vs.  Advent Claymore Convertible

Simt Multi Asset

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Simt Multi Asset Inflation are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Simt Multi-asset is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Advent Claymore Conv

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Advent Claymore Convertible are ranked lower than 25 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward-looking signals, Advent Claymore showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Simt Multi-asset and Advent Claymore

The main advantage of trading using opposite Simt Multi-asset and Advent Claymore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi-asset 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 Simt Multi Asset Inflation 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.