Correlation Between Calamos Global and Calamos Convertible
Can any of the company-specific risk be diversified away by investing in both Calamos 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 Calamos 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 Calamos Global Total and Calamos Convertible Opportunities, you can compare the effects of market volatilities on Calamos 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 Calamos Global with a short position of Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Calamos Convertible.
Diversification Opportunities for Calamos Global and Calamos Convertible
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Calamos is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Total and Calamos Convertible Opportunit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible and Calamos 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 Calamos Global Total 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 Calamos Global i.e., Calamos Global and Calamos Convertible go up and down completely randomly.
Pair Corralation between Calamos Global and Calamos Convertible
Considering the 90-day investment horizon Calamos Global Total is expected to generate 0.96 times more return on investment than Calamos Convertible. However, Calamos Global Total is 1.04 times less risky than Calamos Convertible. It trades about 0.09 of its potential returns per unit of risk. Calamos Convertible Opportunities is currently generating about 0.06 per unit of risk. If you would invest 777.00 in Calamos Global Total on August 24, 2024 and sell it today you would earn a total of 418.00 from holding Calamos Global Total or generate 53.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Global Total vs. Calamos Convertible Opportunit
Performance |
| Timeline |
| Calamos Global Total |
| Calamos Convertible |
Calamos Global and Calamos Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Calamos Convertible
The main advantage of trading using opposite Calamos Global and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos 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.| Calamos Global vs. Calamos Convertible Opportunities | Calamos Global vs. Calamos Convertible And | Calamos Global vs. Calamos LongShort Equity | Calamos Global vs. Calamos Strategic Total |
| Calamos Convertible vs. MFS Investment Grade | Calamos Convertible vs. Eaton Vance National | Calamos Convertible vs. Blackrock Muniyield Quality | Calamos Convertible vs. Munivest Fund |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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