Correlation Between Calamos Convertible and Invesco Gold
Can any of the company-specific risk be diversified away by investing in both Calamos Convertible and Invesco Gold 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 Invesco Gold 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 Invesco Gold Special, you can compare the effects of market volatilities on Calamos Convertible and Invesco Gold 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 Invesco Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Convertible and Invesco Gold.
Diversification Opportunities for Calamos Convertible and Invesco Gold
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Invesco is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Vertible Fund and Invesco Gold Special in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Gold Special 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 Invesco Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Gold Special has no effect on the direction of Calamos Convertible i.e., Calamos Convertible and Invesco Gold go up and down completely randomly.
Pair Corralation between Calamos Convertible and Invesco Gold
Assuming the 90 days horizon Calamos Vertible Fund is expected to generate 0.43 times more return on investment than Invesco Gold. However, Calamos Vertible Fund is 2.34 times less risky than Invesco Gold. It trades about -0.29 of its potential returns per unit of risk. Invesco Gold Special is currently generating about -0.21 per unit of risk. If you would invest 1,938 in Calamos Vertible Fund on October 12, 2024 and sell it today you would lose (88.00) from holding Calamos Vertible Fund or give up 4.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Vertible Fund vs. Invesco Gold Special
Performance |
| Timeline |
| Calamos Convertible |
| Invesco Gold Special |
Calamos Convertible and Invesco Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Convertible and Invesco Gold
The main advantage of trading using opposite Calamos Convertible and Invesco Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Convertible position performs unexpectedly, Invesco Gold 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 Invesco Gold will offset losses from the drop in Invesco Gold's long position.| Calamos Convertible vs. Fidelity Advisor Energy | Calamos Convertible vs. Transamerica Mlp Energy | Calamos Convertible vs. Blackrock All Cap Energy | Calamos Convertible vs. Tortoise Energy Independence |
| Invesco Gold vs. Invesco Vertible Securities | Invesco Gold vs. Rationalpier 88 Convertible | Invesco Gold vs. Allianzgi Convertible Income | Invesco Gold vs. Calamos Vertible 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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