Correlation Between Chestnut Street and Calamos Convertible
Can any of the company-specific risk be diversified away by investing in both Chestnut Street 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 Chestnut Street and Calamos Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chestnut Street Exchange and Calamos Vertible Fund, you can compare the effects of market volatilities on Chestnut Street 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 Chestnut Street with a short position of Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chestnut Street and Calamos Convertible.
Diversification Opportunities for Chestnut Street and Calamos Convertible
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chestnut and Calamos is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Chestnut Street Exchange and Calamos Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible and Chestnut Street 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 Chestnut Street Exchange 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 Chestnut Street i.e., Chestnut Street and Calamos Convertible go up and down completely randomly.
Pair Corralation between Chestnut Street and Calamos Convertible
Assuming the 90 days horizon Chestnut Street Exchange is expected to generate 1.28 times more return on investment than Calamos Convertible. However, Chestnut Street is 1.28 times more volatile than Calamos Vertible Fund. It trades about 0.11 of its potential returns per unit of risk. Calamos Vertible Fund is currently generating about 0.1 per unit of risk. If you would invest 89,923 in Chestnut Street Exchange on August 31, 2024 and sell it today you would earn a total of 28,506 from holding Chestnut Street Exchange or generate 31.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.73% |
| Values | Daily Returns |
Chestnut Street Exchange vs. Calamos Vertible Fund
Performance |
| Timeline |
| Chestnut Street Exchange |
| Calamos Convertible |
Chestnut Street and Calamos Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chestnut Street and Calamos Convertible
The main advantage of trading using opposite Chestnut Street and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chestnut Street 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.| Chestnut Street vs. The Hartford Small | Chestnut Street vs. Vanguard Small Cap Growth | Chestnut Street vs. Chartwell Small Cap | Chestnut Street vs. Us Small Cap |
| Calamos Convertible vs. Bbh Trust | Calamos Convertible vs. Meeder Funds | Calamos Convertible vs. Dws Government Money | Calamos Convertible vs. Chestnut Street Exchange |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |