Correlation Between Allianzgi Convertible and Calamos Convertible
Can any of the company-specific risk be diversified away by investing in both Allianzgi Convertible and Calamos Convertible 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 Allianzgi Convertible and Calamos Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Vertible Fund and Calamos Vertible Fund, you can compare the effects of market volatilities on Allianzgi Convertible and Calamos Convertible 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 Allianzgi Convertible with a short position of Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Convertible and Calamos Convertible.
Diversification Opportunities for Allianzgi Convertible and Calamos Convertible
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Allianzgi and Calamos is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Vertible Fund and Calamos Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible and Allianzgi Convertible 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 Allianzgi Vertible Fund are associated (or correlated) with Calamos Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Convertible has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and Calamos Convertible go up and down completely randomly.
Pair Corralation between Allianzgi Convertible and Calamos Convertible
Assuming the 90 days horizon Allianzgi Vertible Fund is expected to generate 1.1 times more return on investment than Calamos Convertible. However, Allianzgi Convertible is 1.1 times more volatile than Calamos Vertible Fund. It trades about 0.06 of its potential returns per unit of risk. Calamos Vertible Fund is currently generating about 0.06 per unit of risk. If you would invest 3,116 in Allianzgi Vertible Fund on November 27, 2024 and sell it today you would earn a total of 587.00 from holding Allianzgi Vertible Fund or generate 18.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Vertible Fund vs. Calamos Vertible Fund
Performance |
| Timeline |
| Allianzgi Convertible |
| Calamos Convertible |
Allianzgi Convertible and Calamos Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Convertible and Calamos Convertible
The main advantage of trading using opposite Allianzgi Convertible and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Convertible position performs unexpectedly, Calamos Convertible 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 Convertible will offset losses from the drop in Calamos Convertible's long position.| Allianzgi Convertible vs. Blackrock Smid Cap Growth | Allianzgi Convertible vs. Channing Intrinsic Value | Allianzgi Convertible vs. Ashmore Emerging Markets | Allianzgi Convertible vs. T Rowe Price |
| Calamos Convertible vs. T Rowe Price | Calamos Convertible vs. Fidelity Small Cap | Calamos Convertible vs. Inverse Mid Cap Strategy | Calamos Convertible vs. Valic Company I |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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