Correlation Between Calamos Vertible and Extended Market
Can any of the company-specific risk be diversified away by investing in both Calamos Vertible and Extended Market 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 Extended Market 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 Extended Market Index, you can compare the effects of market volatilities on Calamos Vertible and Extended Market 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 Extended Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Vertible and Extended Market.
Diversification Opportunities for Calamos Vertible and Extended Market
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and Extended is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Vertible Fund and Extended Market Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Extended Market Index 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 Extended Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Extended Market Index has no effect on the direction of Calamos Vertible i.e., Calamos Vertible and Extended Market go up and down completely randomly.
Pair Corralation between Calamos Vertible and Extended Market
Assuming the 90 days horizon Calamos Vertible Fund is expected to generate 0.44 times more return on investment than Extended Market. However, Calamos Vertible Fund is 2.25 times less risky than Extended Market. It trades about 0.07 of its potential returns per unit of risk. Extended Market Index is currently generating about 0.03 per unit of risk. If you would invest 1,615 in Calamos Vertible Fund on November 2, 2024 and sell it today you would earn a total of 297.00 from holding Calamos Vertible Fund or generate 18.39% 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. Extended Market Index
Performance |
| Timeline |
| Calamos Vertible |
| Extended Market Index |
Calamos Vertible and Extended Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Vertible and Extended Market
The main advantage of trading using opposite Calamos Vertible and Extended Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Vertible position performs unexpectedly, Extended Market 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 Extended Market will offset losses from the drop in Extended Market's long position.| Calamos Vertible vs. Fidelity Advisor Technology | Calamos Vertible vs. Blackrock Science Technology | Calamos Vertible vs. Red Oak Technology | Calamos Vertible vs. Invesco Technology Fund |
| Extended Market vs. Franklin Low Duration | Extended Market vs. Mndvux | Extended Market vs. Voya Global Equity | Extended Market vs. Legg Mason Bw |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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