Correlation Between Bbh Intermediate and Calamos Hedged
Can any of the company-specific risk be diversified away by investing in both Bbh Intermediate and Calamos Hedged 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 Bbh Intermediate and Calamos Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bbh Intermediate Municipal and Calamos Hedged Equity, you can compare the effects of market volatilities on Bbh Intermediate and Calamos Hedged 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 Bbh Intermediate with a short position of Calamos Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Intermediate and Calamos Hedged.
Diversification Opportunities for Bbh Intermediate and Calamos Hedged
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bbh and Calamos is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Intermediate Municipal and Calamos Hedged Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Hedged Equity and Bbh Intermediate 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 Bbh Intermediate Municipal are associated (or correlated) with Calamos Hedged. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Hedged Equity has no effect on the direction of Bbh Intermediate i.e., Bbh Intermediate and Calamos Hedged go up and down completely randomly.
Pair Corralation between Bbh Intermediate and Calamos Hedged
Assuming the 90 days horizon Bbh Intermediate is expected to generate 2.36 times less return on investment than Calamos Hedged. But when comparing it to its historical volatility, Bbh Intermediate Municipal is 1.93 times less risky than Calamos Hedged. It trades about 0.13 of its potential returns per unit of risk. Calamos Hedged Equity is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,723 in Calamos Hedged Equity on August 29, 2024 and sell it today you would earn a total of 29.00 from holding Calamos Hedged Equity or generate 1.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bbh Intermediate Municipal vs. Calamos Hedged Equity
Performance |
| Timeline |
| Bbh Intermediate Mun |
| Calamos Hedged Equity |
Bbh Intermediate and Calamos Hedged Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bbh Intermediate and Calamos Hedged
The main advantage of trading using opposite Bbh Intermediate and Calamos Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Intermediate position performs unexpectedly, Calamos Hedged 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 Hedged will offset losses from the drop in Calamos Hedged's long position.| Bbh Intermediate vs. HUMANA INC | Bbh Intermediate vs. Aquagold International | Bbh Intermediate vs. Barloworld Ltd ADR | Bbh Intermediate vs. Morningstar Unconstrained Allocation |
| Calamos Hedged vs. Bbh Intermediate Municipal | Calamos Hedged vs. Oklahoma Municipal Fund | Calamos Hedged vs. Baird Strategic Municipal | Calamos Hedged vs. T Rowe Price |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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