Correlation Between California High and Calamos Hedged
Can any of the company-specific risk be diversified away by investing in both California High 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 California High and Calamos Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between California High Yield Municipal and Calamos Hedged Equity, you can compare the effects of market volatilities on California High 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 California High with a short position of Calamos Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of California High and Calamos Hedged.
Diversification Opportunities for California High and Calamos Hedged
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between California and Calamos is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding California High Yield Municipa 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 California 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 California High Yield 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 California High i.e., California High and Calamos Hedged go up and down completely randomly.
Pair Corralation between California High and Calamos Hedged
Assuming the 90 days horizon California High is expected to generate 1.89 times less return on investment than Calamos Hedged. But when comparing it to its historical volatility, California High Yield Municipal is 1.48 times less risky than Calamos Hedged. It trades about 0.11 of its potential returns per unit of risk. Calamos Hedged Equity is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,391 in Calamos Hedged Equity on September 12, 2024 and sell it today you would earn a total of 309.00 from holding Calamos Hedged Equity or generate 22.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.7% |
| Values | Daily Returns |
California High Yield Municipa vs. Calamos Hedged Equity
Performance |
| Timeline |
| California High Yield |
| Calamos Hedged Equity |
California High and Calamos Hedged Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with California High and Calamos Hedged
The main advantage of trading using opposite California High and Calamos Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if California High 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.| California High vs. T Rowe Price | California High vs. Bbh Intermediate Municipal | California High vs. Ab Bond Inflation | California High vs. Blrc Sgy Mnp |
| Calamos Hedged vs. The National Tax Free | Calamos Hedged vs. California High Yield Municipal | Calamos Hedged vs. Gamco Global Telecommunications | Calamos Hedged vs. Nuveen Minnesota Municipal |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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