Correlation Between Calamos Convertible and Absolute Convertible
Can any of the company-specific risk be diversified away by investing in both Calamos Convertible and Absolute 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 Calamos Convertible and Absolute Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Vertible Fund and Absolute Convertible Arbitrage, you can compare the effects of market volatilities on Calamos Convertible and Absolute 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 Calamos Convertible with a short position of Absolute Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Convertible and Absolute Convertible.
Diversification Opportunities for Calamos Convertible and Absolute Convertible
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and Absolute is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Vertible Fund and Absolute Convertible Arbitrage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Absolute Convertible 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 Vertible Fund are associated (or correlated) with Absolute Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Absolute Convertible has no effect on the direction of Calamos Convertible i.e., Calamos Convertible and Absolute Convertible go up and down completely randomly.
Pair Corralation between Calamos Convertible and Absolute Convertible
Assuming the 90 days horizon Calamos Vertible Fund is expected to under-perform the Absolute Convertible. In addition to that, Calamos Convertible is 1.72 times more volatile than Absolute Convertible Arbitrage. It trades about -0.27 of its total potential returns per unit of risk. Absolute Convertible Arbitrage is currently generating about -0.3 per unit of volatility. If you would invest 1,151 in Absolute Convertible Arbitrage on October 12, 2024 and sell it today you would lose (32.00) from holding Absolute Convertible Arbitrage or give up 2.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Vertible Fund vs. Absolute Convertible Arbitrage
Performance |
| Timeline |
| Calamos Convertible |
| Absolute Convertible |
Calamos Convertible and Absolute Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Convertible and Absolute Convertible
The main advantage of trading using opposite Calamos Convertible and Absolute Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Convertible position performs unexpectedly, Absolute 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 Absolute Convertible will offset losses from the drop in Absolute Convertible's long position.| Calamos Convertible vs. Salient Mlp Energy | Calamos Convertible vs. Firsthand Alternative Energy | Calamos Convertible vs. World Energy Fund | Calamos Convertible vs. Clearbridge Energy Mlp |
| Absolute Convertible vs. Qs Growth Fund | Absolute Convertible vs. T Rowe Price | Absolute Convertible vs. Tfa Alphagen Growth | Absolute Convertible vs. Champlain Mid 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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