Correlation Between Calamos Convertible and Western Asset
Can any of the company-specific risk be diversified away by investing in both Calamos Convertible and Western Asset 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 Convertible and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Convertible Opportunities and Western Asset High, you can compare the effects of market volatilities on Calamos Convertible and Western Asset 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 Convertible with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Convertible and Western Asset.
Diversification Opportunities for Calamos Convertible and Western Asset
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and Western is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Convertible Opportunit and Western Asset High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset High and Calamos Convertible 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 Convertible Opportunities are associated (or correlated) with Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset High has no effect on the direction of Calamos Convertible i.e., Calamos Convertible and Western Asset go up and down completely randomly.
Pair Corralation between Calamos Convertible and Western Asset
Considering the 90-day investment horizon Calamos Convertible Opportunities is expected to generate 1.42 times more return on investment than Western Asset. However, Calamos Convertible is 1.42 times more volatile than Western Asset High. It trades about 0.06 of its potential returns per unit of risk. Western Asset High is currently generating about 0.06 per unit of risk. If you would invest 909.00 in Calamos Convertible Opportunities on August 28, 2024 and sell it today you would earn a total of 299.00 from holding Calamos Convertible Opportunities or generate 32.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Convertible Opportunit vs. Western Asset High
Performance |
| Timeline |
| Calamos Convertible |
| Western Asset High |
Calamos Convertible and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Convertible and Western Asset
The main advantage of trading using opposite Calamos Convertible and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Convertible position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Calamos Convertible vs. Calamos Global Dynamic | Calamos Convertible vs. Calamos Strategic Total | Calamos Convertible vs. Calamos LongShort Equity | Calamos Convertible vs. DTF Tax Free |
| Western Asset vs. Pimco Dynamic Income | Western Asset vs. Pimco Corporate Income | Western Asset vs. Cornerstone Strategic Value | Western Asset vs. Cornerstone Strategic Return |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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