Correlation Between Invesco Us and Calamos High
Can any of the company-specific risk be diversified away by investing in both Invesco Us and Calamos High 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 Invesco Us and Calamos High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Government Fund and Calamos High Income, you can compare the effects of market volatilities on Invesco Us and Calamos High 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 Invesco Us with a short position of Calamos High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Us and Calamos High.
Diversification Opportunities for Invesco Us and Calamos High
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between INVESCO and Calamos is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Government Fund and Calamos High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos High Income and Invesco Us 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 Invesco Government Fund are associated (or correlated) with Calamos High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos High Income has no effect on the direction of Invesco Us i.e., Invesco Us and Calamos High go up and down completely randomly.
Pair Corralation between Invesco Us and Calamos High
Assuming the 90 days horizon Invesco Us is expected to generate 1.22 times less return on investment than Calamos High. In addition to that, Invesco Us is 1.14 times more volatile than Calamos High Income. It trades about 0.18 of its total potential returns per unit of risk. Calamos High Income is currently generating about 0.25 per unit of volatility. If you would invest 703.00 in Calamos High Income on August 25, 2024 and sell it today you would earn a total of 84.00 from holding Calamos High Income or generate 11.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Government Fund vs. Calamos High Income
Performance |
| Timeline |
| Invesco Government |
| Calamos High Income |
Invesco Us and Calamos High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Us and Calamos High
The main advantage of trading using opposite Invesco Us and Calamos High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Us position performs unexpectedly, Calamos High 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 Calamos High will offset losses from the drop in Calamos High's long position.| Invesco Us vs. Dreyfus Government Cash | Invesco Us vs. Blackrock Government Bond | Invesco Us vs. Ab Government Exchange | Invesco Us vs. Lord Abbett Government |
| Calamos High vs. Invesco Government Fund | Calamos High vs. Franklin Adjustable Government | Calamos High vs. Short Term Government Fund | Calamos High vs. Lord Abbett Government |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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