Correlation Between Calamos Vertible and Ladenburg Growth
Can any of the company-specific risk be diversified away by investing in both Calamos Vertible and Ladenburg Growth 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 Ladenburg Growth 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 Ladenburg Growth, you can compare the effects of market volatilities on Calamos Vertible and Ladenburg Growth 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 Ladenburg Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Vertible and Ladenburg Growth.
Diversification Opportunities for Calamos Vertible and Ladenburg Growth
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and Ladenburg is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Vertible Fund and Ladenburg Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladenburg Growth 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 Ladenburg Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladenburg Growth has no effect on the direction of Calamos Vertible i.e., Calamos Vertible and Ladenburg Growth go up and down completely randomly.
Pair Corralation between Calamos Vertible and Ladenburg Growth
Assuming the 90 days horizon Calamos Vertible is expected to generate 1.01 times less return on investment than Ladenburg Growth. But when comparing it to its historical volatility, Calamos Vertible Fund is 1.52 times less risky than Ladenburg Growth. It trades about 0.09 of its potential returns per unit of risk. Ladenburg Growth is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,363 in Ladenburg Growth on November 1, 2024 and sell it today you would earn a total of 316.00 from holding Ladenburg Growth or generate 23.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Vertible Fund vs. Ladenburg Growth
Performance |
| Timeline |
| Calamos Vertible |
| Ladenburg Growth |
Calamos Vertible and Ladenburg Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Vertible and Ladenburg Growth
The main advantage of trading using opposite Calamos Vertible and Ladenburg Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Vertible position performs unexpectedly, Ladenburg Growth 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 Ladenburg Growth will offset losses from the drop in Ladenburg Growth's long position.| Calamos Vertible vs. Principal Lifetime Hybrid | Calamos Vertible vs. Calvert Moderate Allocation | Calamos Vertible vs. Balanced Allocation Fund | Calamos Vertible vs. Upright Assets Allocation |
| Ladenburg Growth vs. Versatile Bond Portfolio | Ladenburg Growth vs. Vanguard E Bond | Ladenburg Growth vs. Ab Global Bond | Ladenburg Growth vs. Rbc Ultra Short Fixed |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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