Correlation Between Calamos Convertible and Issachar Fund
Can any of the company-specific risk be diversified away by investing in both Calamos Convertible and Issachar Fund 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 Issachar Fund 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 Issachar Fund Class, you can compare the effects of market volatilities on Calamos Convertible and Issachar Fund 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 Issachar Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Convertible and Issachar Fund.
Diversification Opportunities for Calamos Convertible and Issachar Fund
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Issachar is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Vertible Fund and Issachar Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Issachar Fund Class 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 Issachar Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Issachar Fund Class has no effect on the direction of Calamos Convertible i.e., Calamos Convertible and Issachar Fund go up and down completely randomly.
Pair Corralation between Calamos Convertible and Issachar Fund
Assuming the 90 days horizon Calamos Vertible Fund is expected to generate 0.71 times more return on investment than Issachar Fund. However, Calamos Vertible Fund is 1.41 times less risky than Issachar Fund. It trades about 0.06 of its potential returns per unit of risk. Issachar Fund Class is currently generating about -0.01 per unit of risk. If you would invest 1,593 in Calamos Vertible Fund on October 16, 2024 and sell it today you would earn a total of 245.00 from holding Calamos Vertible Fund or generate 15.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Vertible Fund vs. Issachar Fund Class
Performance |
| Timeline |
| Calamos Convertible |
| Issachar Fund Class |
Calamos Convertible and Issachar Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Convertible and Issachar Fund
The main advantage of trading using opposite Calamos Convertible and Issachar Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Convertible position performs unexpectedly, Issachar Fund 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 Issachar Fund will offset losses from the drop in Issachar Fund's long position.The idea behind Calamos Vertible Fund and Issachar Fund Class 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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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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