Correlation Between Calamos Convertible and Putnam Convertible
Can any of the company-specific risk be diversified away by investing in both Calamos Convertible and Putnam Convertible 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 Putnam Convertible 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 Putnam Vertible Securities, you can compare the effects of market volatilities on Calamos Convertible and Putnam Convertible 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 Putnam Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Convertible and Putnam Convertible.
Diversification Opportunities for Calamos Convertible and Putnam Convertible
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and Putnam is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Vertible Fund and Putnam Vertible Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Vertible Secu 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 Putnam Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Vertible Secu has no effect on the direction of Calamos Convertible i.e., Calamos Convertible and Putnam Convertible go up and down completely randomly.
Pair Corralation between Calamos Convertible and Putnam Convertible
Assuming the 90 days horizon Calamos Vertible Fund is expected to under-perform the Putnam Convertible. In addition to that, Calamos Convertible is 1.11 times more volatile than Putnam Vertible Securities. It trades about -0.27 of its total potential returns per unit of risk. Putnam Vertible Securities is currently generating about -0.2 per unit of volatility. If you would invest 2,661 in Putnam Vertible Securities on October 12, 2024 and sell it today you would lose (78.00) from holding Putnam Vertible Securities or give up 2.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Vertible Fund vs. Putnam Vertible Securities
Performance |
| Timeline |
| Calamos Convertible |
| Putnam Vertible Secu |
Calamos Convertible and Putnam Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Convertible and Putnam Convertible
The main advantage of trading using opposite Calamos Convertible and Putnam Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Convertible position performs unexpectedly, Putnam Convertible 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 Putnam Convertible will offset losses from the drop in Putnam Convertible's long position.| Calamos Convertible vs. Salient Mlp Energy | Calamos Convertible vs. Firsthand Alternative Energy | Calamos Convertible vs. World Energy Fund | Calamos Convertible vs. Clearbridge Energy Mlp |
| Putnam Convertible vs. Small Cap Value Fund | Putnam Convertible vs. Amg River Road | Putnam Convertible vs. Ultrasmall Cap Profund Ultrasmall Cap | Putnam Convertible vs. Lord Abbett Small |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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