Correlation Between Calamos High and Calamos Timpani
Can any of the company-specific risk be diversified away by investing in both Calamos High and Calamos Timpani 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 High and Calamos Timpani into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos High Income and Calamos Timpani Small, you can compare the effects of market volatilities on Calamos High and Calamos Timpani 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 High with a short position of Calamos Timpani. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos High and Calamos Timpani.
Diversification Opportunities for Calamos High and Calamos Timpani
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Calamos is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Calamos High Income and Calamos Timpani Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Timpani Small and Calamos High 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 High Income are associated (or correlated) with Calamos Timpani. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Timpani Small has no effect on the direction of Calamos High i.e., Calamos High and Calamos Timpani go up and down completely randomly.
Pair Corralation between Calamos High and Calamos Timpani
Assuming the 90 days horizon Calamos High is expected to generate 3.61 times less return on investment than Calamos Timpani. But when comparing it to its historical volatility, Calamos High Income is 6.13 times less risky than Calamos Timpani. It trades about 0.14 of its potential returns per unit of risk. Calamos Timpani Small is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,517 in Calamos Timpani Small on September 3, 2024 and sell it today you would earn a total of 1,708 from holding Calamos Timpani Small or generate 67.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos High Income vs. Calamos Timpani Small
Performance |
| Timeline |
| Calamos High Income |
| Calamos Timpani Small |
Calamos High and Calamos Timpani Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos High and Calamos Timpani
The main advantage of trading using opposite Calamos High and Calamos Timpani positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos High position performs unexpectedly, Calamos Timpani 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 Timpani will offset losses from the drop in Calamos Timpani's long position.| Calamos High vs. Allianzgi Convertible Income | Calamos High vs. Rationalpier 88 Convertible | Calamos High vs. Advent Claymore Convertible | Calamos High vs. Fidelity Sai Convertible |
| Calamos Timpani vs. Omni Small Cap Value | Calamos Timpani vs. Arrow Managed Futures | Calamos Timpani vs. Growth Strategy Fund | Calamos Timpani vs. Ab Small Cap |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |