Correlation Between Calamos Convertible and Calamos Timpani
Can any of the company-specific risk be diversified away by investing in both Calamos Convertible 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 Convertible 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 Vertible Fund and Calamos Timpani Smid, you can compare the effects of market volatilities on Calamos Convertible 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 Convertible with a short position of Calamos Timpani. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Convertible and Calamos Timpani.
Diversification Opportunities for Calamos Convertible and Calamos Timpani
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and Calamos is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Vertible Fund and Calamos Timpani Smid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Timpani Smid 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 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 Smid has no effect on the direction of Calamos Convertible i.e., Calamos Convertible and Calamos Timpani go up and down completely randomly.
Pair Corralation between Calamos Convertible and Calamos Timpani
Assuming the 90 days horizon Calamos Convertible is expected to generate 2.71 times less return on investment than Calamos Timpani. But when comparing it to its historical volatility, Calamos Vertible Fund is 2.51 times less risky than Calamos Timpani. It trades about 0.09 of its potential returns per unit of risk. Calamos Timpani Smid is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 970.00 in Calamos Timpani Smid on September 3, 2024 and sell it today you would earn a total of 727.00 from holding Calamos Timpani Smid or generate 74.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Vertible Fund vs. Calamos Timpani Smid
Performance |
| Timeline |
| Calamos Convertible |
| Calamos Timpani Smid |
Calamos Convertible and Calamos Timpani Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Convertible and Calamos Timpani
The main advantage of trading using opposite Calamos Convertible and Calamos Timpani positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Convertible 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 Convertible vs. Sprott Gold Equity | Calamos Convertible vs. Oppenheimer Gold Special | Calamos Convertible vs. Goldman Sachs Short | Calamos Convertible vs. Gold And Precious |
| Calamos Timpani vs. Fidelity Advisor Diversified | Calamos Timpani vs. Calvert Conservative Allocation | Calamos Timpani vs. Pgim Conservative Retirement | Calamos Timpani vs. Prudential Core Conservative |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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