Correlation Between Barings Us and Calamos Hedged
Can any of the company-specific risk be diversified away by investing in both Barings Us 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 Barings Us and Calamos Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings High Yield and Calamos Hedged Equity, you can compare the effects of market volatilities on Barings Us 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 Barings Us with a short position of Calamos Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Us and Calamos Hedged.
Diversification Opportunities for Barings Us and Calamos Hedged
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Barings and Calamos is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Barings High Yield 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 Barings Us 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 Barings High Yield 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 Barings Us i.e., Barings Us and Calamos Hedged go up and down completely randomly.
Pair Corralation between Barings Us and Calamos Hedged
Assuming the 90 days horizon Barings Us is expected to generate 1.65 times less return on investment than Calamos Hedged. But when comparing it to its historical volatility, Barings High Yield is 1.61 times less risky than Calamos Hedged. It trades about 0.12 of its potential returns per unit of risk. Calamos Hedged Equity is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,346 in Calamos Hedged Equity on October 30, 2024 and sell it today you would earn a total of 410.00 from holding Calamos Hedged Equity or generate 30.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Barings High Yield vs. Calamos Hedged Equity
Performance |
| Timeline |
| Barings High Yield |
| Calamos Hedged Equity |
Barings Us and Calamos Hedged Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Us and Calamos Hedged
The main advantage of trading using opposite Barings Us and Calamos Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Us 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.| Barings Us vs. Shelton E Value | Barings Us vs. Dgi Investment Trust | Barings Us vs. Tfa Quantitative | Barings Us vs. Rbb Fund |
| Calamos Hedged vs. Short Precious Metals | Calamos Hedged vs. Gabelli Gold Fund | Calamos Hedged vs. Wells Fargo Advantage | Calamos Hedged vs. Wells Fargo Advantage |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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