Correlation Between Calamos Convertible and Pimco Income
Can any of the company-specific risk be diversified away by investing in both Calamos Convertible and Pimco Income 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 Pimco Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Convertible And and Pimco Income Strategy, you can compare the effects of market volatilities on Calamos Convertible and Pimco Income 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 Pimco Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Convertible and Pimco Income.
Diversification Opportunities for Calamos Convertible and Pimco Income
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Pimco is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Convertible And and Pimco Income Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Income Strategy 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 And are associated (or correlated) with Pimco Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Income Strategy has no effect on the direction of Calamos Convertible i.e., Calamos Convertible and Pimco Income go up and down completely randomly.
Pair Corralation between Calamos Convertible and Pimco Income
Considering the 90-day investment horizon Calamos Convertible And is expected to generate 1.41 times more return on investment than Pimco Income. However, Calamos Convertible is 1.41 times more volatile than Pimco Income Strategy. It trades about 0.05 of its potential returns per unit of risk. Pimco Income Strategy is currently generating about 0.06 per unit of risk. If you would invest 975.00 in Calamos Convertible And on September 3, 2024 and sell it today you would earn a total of 249.00 from holding Calamos Convertible And or generate 25.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Convertible And vs. Pimco Income Strategy
Performance |
| Timeline |
| Calamos Convertible And |
| Pimco Income Strategy |
Calamos Convertible and Pimco Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Convertible and Pimco Income
The main advantage of trading using opposite Calamos Convertible and Pimco Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Convertible position performs unexpectedly, Pimco Income 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 Pimco Income will offset losses from the drop in Pimco Income's long position.| Calamos Convertible vs. Calamos Global Dynamic | Calamos Convertible vs. Calamos Strategic Total | Calamos Convertible vs. Calamos Dynamic Convertible | Calamos Convertible vs. Calamos LongShort Equity |
| Pimco Income vs. Brookfield Real Assets | Pimco Income vs. Guggenheim Strategic Opportunities | Pimco Income vs. Cornerstone Strategic Return | Pimco Income vs. Cornerstone Strategic Value |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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