Correlation Between Calamos Hedged and Bbh Limited
Can any of the company-specific risk be diversified away by investing in both Calamos Hedged and Bbh Limited 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 Hedged and Bbh Limited into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Hedged Equity and Bbh Limited Duration, you can compare the effects of market volatilities on Calamos Hedged and Bbh Limited 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 Hedged with a short position of Bbh Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Hedged and Bbh Limited.
Diversification Opportunities for Calamos Hedged and Bbh Limited
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Bbh is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Hedged Equity and Bbh Limited Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bbh Limited Duration and Calamos Hedged 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 Hedged Equity are associated (or correlated) with Bbh Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bbh Limited Duration has no effect on the direction of Calamos Hedged i.e., Calamos Hedged and Bbh Limited go up and down completely randomly.
Pair Corralation between Calamos Hedged and Bbh Limited
Assuming the 90 days horizon Calamos Hedged Equity is expected to generate 4.13 times more return on investment than Bbh Limited. However, Calamos Hedged is 4.13 times more volatile than Bbh Limited Duration. It trades about 0.14 of its potential returns per unit of risk. Bbh Limited Duration is currently generating about 0.26 per unit of risk. If you would invest 1,355 in Calamos Hedged Equity on October 29, 2024 and sell it today you would earn a total of 416.00 from holding Calamos Hedged Equity or generate 30.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Hedged Equity vs. Bbh Limited Duration
Performance |
| Timeline |
| Calamos Hedged Equity |
| Bbh Limited Duration |
Calamos Hedged and Bbh Limited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Hedged and Bbh Limited
The main advantage of trading using opposite Calamos Hedged and Bbh Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Hedged position performs unexpectedly, Bbh Limited 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 Bbh Limited will offset losses from the drop in Bbh Limited's long position.| Calamos Hedged vs. Dreyfusstandish Global Fixed | Calamos Hedged vs. Barings High Yield | Calamos Hedged vs. Morningstar Defensive Bond | Calamos Hedged vs. California Bond Fund |
| Bbh Limited vs. Bbh Partner Fund | Bbh Limited vs. Bbh Limited Duration | Bbh Limited vs. Clarkston Partners Fund | Bbh Limited vs. Bbh Intermediate Municipal |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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