Correlation Between Calamos Convertible and Touchstone Large
Can any of the company-specific risk be diversified away by investing in both Calamos Convertible and Touchstone Large 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 Touchstone Large 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 Touchstone Large Cap, you can compare the effects of market volatilities on Calamos Convertible and Touchstone Large 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 Touchstone Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Convertible and Touchstone Large.
Diversification Opportunities for Calamos Convertible and Touchstone Large
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and Touchstone is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Vertible Fund and Touchstone Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Large Cap 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 Touchstone Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Large Cap has no effect on the direction of Calamos Convertible i.e., Calamos Convertible and Touchstone Large go up and down completely randomly.
Pair Corralation between Calamos Convertible and Touchstone Large
Assuming the 90 days horizon Calamos Vertible Fund is expected to generate 0.74 times more return on investment than Touchstone Large. However, Calamos Vertible Fund is 1.35 times less risky than Touchstone Large. It trades about 0.39 of its potential returns per unit of risk. Touchstone Large Cap is currently generating about 0.28 per unit of risk. If you would invest 1,840 in Calamos Vertible Fund on August 29, 2024 and sell it today you would earn a total of 95.00 from holding Calamos Vertible Fund or generate 5.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Calamos Vertible Fund vs. Touchstone Large Cap
Performance |
| Timeline |
| Calamos Convertible |
| Touchstone Large Cap |
Calamos Convertible and Touchstone Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Convertible and Touchstone Large
The main advantage of trading using opposite Calamos Convertible and Touchstone Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Convertible position performs unexpectedly, Touchstone Large 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 Touchstone Large will offset losses from the drop in Touchstone Large's long position.| Calamos Convertible vs. Franklin Vertible Securities | Calamos Convertible vs. Franklin Vertible Securities | Calamos Convertible vs. Allianzgi Vertible Fund | Calamos Convertible vs. Allianzgi Vertible Fund |
| Touchstone Large vs. Vanguard Total Stock | Touchstone Large vs. Vanguard 500 Index | Touchstone Large vs. Vanguard Total Stock | Touchstone Large vs. Vanguard Total Stock |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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