Correlation Between Ab Global and Calamos Convertible
Can any of the company-specific risk be diversified away by investing in both Ab Global 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 Ab Global and Calamos Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Global Risk and Calamos Vertible Fund, you can compare the effects of market volatilities on Ab Global 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 Ab Global with a short position of Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and Calamos Convertible.
Diversification Opportunities for Ab Global and Calamos Convertible
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CABIX and Calamos is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global Risk and Calamos Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible and Ab Global 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 Ab Global Risk 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 Ab Global i.e., Ab Global and Calamos Convertible go up and down completely randomly.
Pair Corralation between Ab Global and Calamos Convertible
Assuming the 90 days horizon Ab Global is expected to generate 1.68 times less return on investment than Calamos Convertible. But when comparing it to its historical volatility, Ab Global Risk is 1.17 times less risky than Calamos Convertible. It trades about 0.13 of its potential returns per unit of risk. Calamos Vertible Fund is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,718 in Calamos Vertible Fund on September 5, 2024 and sell it today you would earn a total of 225.00 from holding Calamos Vertible Fund or generate 13.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Global Risk vs. Calamos Vertible Fund
Performance |
| Timeline |
| Ab Global Risk |
| Calamos Convertible |
Ab Global and Calamos Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and Calamos Convertible
The main advantage of trading using opposite Ab Global and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global 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.| Ab Global vs. Oppenheimer International Diversified | Ab Global vs. Massmutual Premier Diversified | Ab Global vs. American Funds Conservative | Ab Global vs. Pgim Conservative Retirement |
| Calamos Convertible vs. Old Westbury Large | Calamos Convertible vs. Volumetric Fund Volumetric | Calamos Convertible vs. Touchstone Large Cap | Calamos Convertible vs. Qs Large Cap |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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