Correlation Between Calamos Vertible and Franklin Vertible
Can any of the company-specific risk be diversified away by investing in both Calamos Vertible and Franklin Vertible 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 Calamos Vertible and Franklin Vertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Vertible Fund and Franklin Vertible Securities, you can compare the effects of market volatilities on Calamos Vertible and Franklin Vertible 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 Calamos Vertible with a short position of Franklin Vertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Vertible and Franklin Vertible.
Diversification Opportunities for Calamos Vertible and Franklin Vertible
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and Franklin is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Vertible Fund and Franklin Vertible Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Vertible and Calamos Vertible 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 Calamos Vertible Fund are associated (or correlated) with Franklin Vertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Vertible has no effect on the direction of Calamos Vertible i.e., Calamos Vertible and Franklin Vertible go up and down completely randomly.
Pair Corralation between Calamos Vertible and Franklin Vertible
Assuming the 90 days horizon Calamos Vertible is expected to generate 1.44 times less return on investment than Franklin Vertible. In addition to that, Calamos Vertible is 1.15 times more volatile than Franklin Vertible Securities. It trades about 0.14 of its total potential returns per unit of risk. Franklin Vertible Securities is currently generating about 0.23 per unit of volatility. If you would invest 2,395 in Franklin Vertible Securities on September 13, 2024 and sell it today you would earn a total of 55.00 from holding Franklin Vertible Securities or generate 2.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Vertible Fund vs. Franklin Vertible Securities
Performance |
| Timeline |
| Calamos Vertible |
| Franklin Vertible |
Calamos Vertible and Franklin Vertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Vertible and Franklin Vertible
The main advantage of trading using opposite Calamos Vertible and Franklin Vertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Vertible position performs unexpectedly, Franklin Vertible 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 Franklin Vertible will offset losses from the drop in Franklin Vertible's long position.| Calamos Vertible vs. World Energy Fund | Calamos Vertible vs. Gmo Resources | Calamos Vertible vs. Franklin Natural Resources | Calamos Vertible vs. Calvert Global Energy |
| Franklin Vertible vs. Fidelity Advisor Technology | Franklin Vertible vs. Global Technology Portfolio | Franklin Vertible vs. Pgim Jennison Technology | Franklin Vertible vs. Blackrock Science Technology |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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