Correlation Between Advent Claymore and Edward Jones

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

Diversification Opportunities for Advent Claymore and Edward Jones

0.0

Correlation Coefficient

Advent Claymore  Edward Jones

Pay attention - limited upside

The 3 months correlation between Advent and Edward is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible and Edward Jones Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edward Jones Money 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 Edward Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edward Jones Money has no effect on the direction of Advent Claymore i.e., Advent Claymore and Edward Jones go up and down completely randomly.

Pair Corralation between Advent Claymore and Edward Jones

If you would invest  1,137  in Advent Claymore Convertible on September 14, 2024 and sell it today you would earn a total of  111.00  from holding Advent Claymore Convertible or generate 9.76% return on investment over 90 days.

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

Advent Claymore Convertible  vs.  Edward Jones Money

Advent Claymore Conv

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Advent Claymore Convertible are ranked lower than 14 (%) 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.

Edward Jones Money

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Edward Jones Money has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Edward Jones 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 Edward Jones

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

The idea behind Advent Claymore Convertible and Edward Jones Money 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.