Correlation Between Advent Claymore and Ab Servative

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

Diversification Opportunities for Advent Claymore and Ab Servative

0.99

Correlation Coefficient

Advent Claymore  Ab Servative

No risk reduction

The 3 months correlation between Advent and APWIX is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Ab Servative Wealth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Servative Wealth 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 Ab Servative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Servative Wealth has no effect on the direction of Advent Claymore i.e., Advent Claymore and Ab Servative go up and down completely randomly.

Pair Corralation between Advent Claymore and Ab Servative

Assuming the 90 days horizon Advent Claymore is expected to generate 1.03 times less return on investment than Ab Servative. In addition to that, Advent Claymore is 1.23 times more volatile than Ab Servative Wealth. It trades about 0.24 of its total potential returns per unit of risk. Ab Servative Wealth is currently generating about 0.3 per unit of volatility. If you would invest  1,172  in Ab Servative Wealth on April 29, 2025 and sell it today you would earn a total of  126.00  from holding Ab Servative Wealth or generate 10.75% return on investment over 90 days.

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

Advent Claymore Convertible  vs.  Ab Servative Wealth

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 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward-looking signals, Advent Claymore may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Ab Servative Wealth

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ab Servative Wealth are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Ab Servative may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Advent Claymore and Ab Servative

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

The idea behind Advent Claymore Convertible and Ab Servative Wealth 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..