Correlation Between Calamos Convertible and Putnam High
Can any of the company-specific risk be diversified away by investing in both Calamos Convertible and Putnam High 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 Putnam High 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 Putnam High Income, you can compare the effects of market volatilities on Calamos Convertible and Putnam High 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 Putnam High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Convertible and Putnam High.
Diversification Opportunities for Calamos Convertible and Putnam High
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Putnam is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Convertible Opportunit and Putnam High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam High Income 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 Putnam High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam High Income has no effect on the direction of Calamos Convertible i.e., Calamos Convertible and Putnam High go up and down completely randomly.
Pair Corralation between Calamos Convertible and Putnam High
Considering the 90-day investment horizon Calamos Convertible Opportunities is expected to generate 2.08 times more return on investment than Putnam High. However, Calamos Convertible is 2.08 times more volatile than Putnam High Income. It trades about 0.22 of its potential returns per unit of risk. Putnam High Income is currently generating about 0.18 per unit of risk. If you would invest 1,156 in Calamos Convertible Opportunities on August 26, 2024 and sell it today you would earn a total of 55.00 from holding Calamos Convertible Opportunities or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Convertible Opportunit vs. Putnam High Income
Performance |
| Timeline |
| Calamos Convertible |
| Putnam High Income |
Calamos Convertible and Putnam High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Convertible and Putnam High
The main advantage of trading using opposite Calamos Convertible and Putnam High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Convertible position performs unexpectedly, Putnam High 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 Putnam High will offset losses from the drop in Putnam High's long position.| Calamos Convertible vs. Calamos Global Dynamic | Calamos Convertible vs. Calamos Strategic Total | Calamos Convertible vs. Calamos LongShort Equity | Calamos Convertible vs. Calamos Convertible And |
| Putnam High vs. Calamos Convertible Opportunities | Putnam High vs. Calamos Global Dynamic | Putnam High vs. Calamos Strategic Total | Putnam High vs. Calamos LongShort Equity |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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