Correlation Between American High and Calamos High
Can any of the company-specific risk be diversified away by investing in both American High 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 American High and Calamos High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American High Income and Calamos High Income, you can compare the effects of market volatilities on American High 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 American High with a short position of Calamos High. Check out your portfolio center. Please also check ongoing floating volatility patterns of American High and Calamos High.
Diversification Opportunities for American High and Calamos High
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between American and Calamos is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding American High Income 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 American High 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 American High Income 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 American High i.e., American High and Calamos High go up and down completely randomly.
Pair Corralation between American High and Calamos High
Assuming the 90 days horizon American High is expected to generate 1.01 times less return on investment than Calamos High. In addition to that, American High is 1.24 times more volatile than Calamos High Income. It trades about 0.15 of its total potential returns per unit of risk. Calamos High Income is currently generating about 0.19 per unit of volatility. If you would invest 650.00 in Calamos High Income on November 27, 2024 and sell it today you would earn a total of 135.00 from holding Calamos High Income or generate 20.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
American High Income vs. Calamos High Income
Performance |
| Timeline |
| American High Income |
| Calamos High Income |
American High and Calamos High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American High and Calamos High
The main advantage of trading using opposite American High and Calamos High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American High 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.| American High vs. Baird Quality Intermediate | American High vs. T Rowe Price | American High vs. Touchstone Ultra Short | American High vs. Ab Bond Inflation |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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