Correlation Between Cibc Atlas and Advent Claymore

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

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

Diversification Opportunities for Cibc Atlas and Advent Claymore

-0.39

Correlation Coefficient

Cibc Atlas  Advent Claymore

Very good diversification

The 3 months correlation between Cibc and Advent is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Cibc Atlas International 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 Cibc Atlas 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 Cibc Atlas International 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 Cibc Atlas i.e., Cibc Atlas and Advent Claymore go up and down completely randomly.

Pair Corralation between Cibc Atlas and Advent Claymore

Assuming the 90 days horizon Cibc Atlas International is expected to under-perform the Advent Claymore. But the mutual fund apears to be less risky and, when comparing its historical volatility, Cibc Atlas International is 1.06 times less risky than Advent Claymore. The mutual fund trades about 0.0 of its potential returns per unit of risk. The Advent Claymore Convertible is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  1,137  in Advent Claymore Convertible on September 15, 2024 and sell it today you would earn a total of  86.00  from holding Advent Claymore Convertible or generate 7.56% return on investment over 90 days.

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

Cibc Atlas International  vs.  Advent Claymore Convertible

Cibc Atlas International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cibc Atlas International has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Cibc Atlas is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Advent Claymore Conv

Risk-Adjusted Performance

10 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Advent Claymore Convertible are ranked lower than 10 (%) 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.

Pair Trading with Cibc Atlas and Advent Claymore

The main advantage of trading using opposite Cibc Atlas and Advent Claymore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cibc Atlas 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 Cibc Atlas International 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.