Correlation Between Advent Claymore and Mfs Lifetime

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

Diversification Opportunities for Advent Claymore and Mfs Lifetime

0.94

Correlation Coefficient

Advent Claymore  Mfs Lifetime

Almost no diversification

The 3 months correlation between Advent and Mfs is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Mfs Lifetime Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Lifetime Retirement 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 Mfs Lifetime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Lifetime Retirement has no effect on the direction of Advent Claymore i.e., Advent Claymore and Mfs Lifetime go up and down completely randomly.

Pair Corralation between Advent Claymore and Mfs Lifetime

Assuming the 90 days horizon Advent Claymore Convertible is expected to generate 2.82 times more return on investment than Mfs Lifetime. However, Advent Claymore is 2.82 times more volatile than Mfs Lifetime Retirement. It trades about 0.14 of its potential returns per unit of risk. Mfs Lifetime Retirement is currently generating about 0.13 per unit of risk. If you would invest  1,265  in Advent Claymore Convertible on August 6, 2025 and sell it today you would earn a total of  70.00  from holding Advent Claymore Convertible or generate 5.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.44%
Values	Daily Returns

Advent Claymore Convertible  vs.  Mfs Lifetime Retirement

Advent Claymore Conv

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Advent Claymore Convertible are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward-looking signals, Advent Claymore is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Mfs Lifetime Retirement

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mfs Lifetime Retirement are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Mfs Lifetime is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Advent Claymore and Mfs Lifetime

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

The idea behind Advent Claymore Convertible and Mfs Lifetime Retirement 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.

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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.