Correlation Between Calamos Convertible and Virtus Global
Can any of the company-specific risk be diversified away by investing in both Calamos Convertible and Virtus Global 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 Virtus Global 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 Virtus Global Dividend, you can compare the effects of market volatilities on Calamos Convertible and Virtus Global 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 Virtus Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Convertible and Virtus Global.
Diversification Opportunities for Calamos Convertible and Virtus Global
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and Virtus is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Convertible And and Virtus Global Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Global Dividend 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 Virtus Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Global Dividend has no effect on the direction of Calamos Convertible i.e., Calamos Convertible and Virtus Global go up and down completely randomly.
Pair Corralation between Calamos Convertible and Virtus Global
Considering the 90-day investment horizon Calamos Convertible is expected to generate 1.3 times less return on investment than Virtus Global. But when comparing it to its historical volatility, Calamos Convertible And is 1.04 times less risky than Virtus Global. It trades about 0.31 of its potential returns per unit of risk. Virtus Global Dividend is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 585.00 in Virtus Global Dividend on September 1, 2024 and sell it today you would earn a total of 38.00 from holding Virtus Global Dividend or generate 6.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Calamos Convertible And vs. Virtus Global Dividend
Performance |
| Timeline |
| Calamos Convertible And |
| Virtus Global Dividend |
Calamos Convertible and Virtus Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Convertible and Virtus Global
The main advantage of trading using opposite Calamos Convertible and Virtus Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Convertible position performs unexpectedly, Virtus Global 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 Virtus Global will offset losses from the drop in Virtus Global'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 |
| Virtus Global vs. Blackrock Debt Strategies | Virtus Global vs. Western Asset Global | Virtus Global vs. Pimco Income Strategy | Virtus Global vs. Calamos Convertible And |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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