Correlation Between Bbh Intermediate and Calamos Total
Can any of the company-specific risk be diversified away by investing in both Bbh Intermediate and Calamos Total 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 Total 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 Total Return, you can compare the effects of market volatilities on Bbh Intermediate and Calamos Total 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 Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Intermediate and Calamos Total.
Diversification Opportunities for Bbh Intermediate and Calamos Total
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bbh and Calamos is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Intermediate Municipal and Calamos Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Total Return 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 Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Total Return has no effect on the direction of Bbh Intermediate i.e., Bbh Intermediate and Calamos Total go up and down completely randomly.
Pair Corralation between Bbh Intermediate and Calamos Total
Assuming the 90 days horizon Bbh Intermediate Municipal is expected to generate 0.6 times more return on investment than Calamos Total. However, Bbh Intermediate Municipal is 1.66 times less risky than Calamos Total. It trades about 0.14 of its potential returns per unit of risk. Calamos Total Return is currently generating about 0.06 per unit of risk. If you would invest 1,027 in Bbh Intermediate Municipal on September 15, 2024 and sell it today you would earn a total of 5.00 from holding Bbh Intermediate Municipal or generate 0.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bbh Intermediate Municipal vs. Calamos Total Return
Performance |
| Timeline |
| Bbh Intermediate Mun |
| Calamos Total Return |
Bbh Intermediate and Calamos Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bbh Intermediate and Calamos Total
The main advantage of trading using opposite Bbh Intermediate and Calamos Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Intermediate position performs unexpectedly, Calamos Total 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 Total will offset losses from the drop in Calamos Total's long position.| Bbh Intermediate vs. Alger Health Sciences | Bbh Intermediate vs. Blackrock Health Sciences | Bbh Intermediate vs. The Gabelli Healthcare | Bbh Intermediate vs. Delaware Healthcare Fund |
| Calamos Total vs. Dreyfusstandish Global Fixed | Calamos Total vs. Bbh Intermediate Municipal | Calamos Total vs. T Rowe Price | Calamos Total vs. Pace High Yield |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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