Correlation Between Calamos Vertible and Investment
Can any of the company-specific risk be diversified away by investing in both Calamos Vertible and Investment 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 Vertible and Investment 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 Investment Of America, you can compare the effects of market volatilities on Calamos Vertible and Investment 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 Vertible with a short position of Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Vertible and Investment.
Diversification Opportunities for Calamos Vertible and Investment
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Investment is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Vertible Fund and Investment Of America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment Of America and Calamos Vertible 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 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment Of America has no effect on the direction of Calamos Vertible i.e., Calamos Vertible and Investment go up and down completely randomly.
Pair Corralation between Calamos Vertible and Investment
Assuming the 90 days horizon Calamos Vertible is expected to generate 1.0 times less return on investment than Investment. But when comparing it to its historical volatility, Calamos Vertible Fund is 1.1 times less risky than Investment. It trades about 0.12 of its potential returns per unit of risk. Investment Of America is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 5,898 in Investment Of America on October 25, 2024 and sell it today you would earn a total of 85.00 from holding Investment Of America or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Vertible Fund vs. Investment Of America
Performance |
| Timeline |
| Calamos Vertible |
| Investment Of America |
Calamos Vertible and Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Vertible and Investment
The main advantage of trading using opposite Calamos Vertible and Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Vertible position performs unexpectedly, Investment 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 Investment will offset losses from the drop in Investment's long position.| Calamos Vertible vs. Guidemark Large Cap | Calamos Vertible vs. Pnc Balanced Allocation | Calamos Vertible vs. Oppenheimer Global Allocation | Calamos Vertible vs. Dodge Cox Stock |
| Investment vs. First Eagle Gold | Investment vs. Global Gold Fund | Investment vs. Great West Goldman Sachs | Investment vs. Gabelli Gold Fund |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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