Correlation Between Calamos Convertible and Calamos Opportunistic

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Can any of the company-specific risk be diversified away by investing in both Calamos Convertible and Calamos Opportunistic 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 Opportunistic 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 Opportunistic Value, you can compare the effects of market volatilities on Calamos Convertible and Calamos Opportunistic 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 Opportunistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Convertible and Calamos Opportunistic.

Diversification Opportunities for Calamos Convertible and Calamos Opportunistic

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 Opportunistic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Opportunistic 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 Opportunistic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Opportunistic has no effect on the direction of Calamos Convertible i.e., Calamos Convertible and Calamos Opportunistic go up and down completely randomly.

Pair Corralation between Calamos Convertible and Calamos Opportunistic

Assuming the 90 days horizon Calamos Vertible Fund is expected to generate 0.64 times more return on investment than Calamos Opportunistic. However, Calamos Vertible Fund is 1.56 times less risky than Calamos Opportunistic. It trades about 0.39 of its potential returns per unit of risk. Calamos Opportunistic Value is currently generating about 0.18 per unit of risk. If you would invest  1,840  in Calamos Vertible Fund on August 29, 2024 and sell it today you would earn a total of  95.00  from holding Calamos Vertible Fund or generate 5.16% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Calamos Vertible Fund  vs.  Calamos Opportunistic Value

 Performance 
       Timeline  
Calamos Convertible 

Risk-Adjusted Performance

21 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Vertible Fund are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Calamos Convertible may actually be approaching a critical reversion point that can send shares even higher in December 2024.
Calamos Opportunistic 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Opportunistic Value are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Calamos Opportunistic may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Calamos Convertible and Calamos Opportunistic Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Calamos Convertible and Calamos Opportunistic

The main advantage of trading using opposite Calamos Convertible and Calamos Opportunistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Convertible position performs unexpectedly, Calamos Opportunistic 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 Opportunistic will offset losses from the drop in Calamos Opportunistic's long position.
The idea behind Calamos Vertible Fund and Calamos Opportunistic Value pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.

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