Correlation Between Calamos High and Invesco Us
Can any of the company-specific risk be diversified away by investing in both Calamos High and Invesco Us 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 High and Invesco Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos High Income and Invesco Government Fund, you can compare the effects of market volatilities on Calamos High and Invesco Us 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 High with a short position of Invesco Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos High and Invesco Us.
Diversification Opportunities for Calamos High and Invesco Us
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Invesco is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Calamos High Income and Invesco Government Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Government and Calamos High 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 High Income are associated (or correlated) with Invesco Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Government has no effect on the direction of Calamos High i.e., Calamos High and Invesco Us go up and down completely randomly.
Pair Corralation between Calamos High and Invesco Us
Assuming the 90 days horizon Calamos High Income is expected to generate 0.92 times more return on investment than Invesco Us. However, Calamos High Income is 1.09 times less risky than Invesco Us. It trades about 0.16 of its potential returns per unit of risk. Invesco Government Fund is currently generating about 0.09 per unit of risk. If you would invest 652.00 in Calamos High Income on August 29, 2024 and sell it today you would earn a total of 137.00 from holding Calamos High Income or generate 21.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos High Income vs. Invesco Government Fund
Performance |
| Timeline |
| Calamos High Income |
| Invesco Government |
Calamos High and Invesco Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos High and Invesco Us
The main advantage of trading using opposite Calamos High and Invesco Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos High position performs unexpectedly, Invesco Us 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 Invesco Us will offset losses from the drop in Invesco Us' long position.| Calamos High vs. Prudential Government Income | Calamos High vs. Government Securities Fund | Calamos High vs. Dunham Porategovernment Bond | Calamos High vs. Short Term Government Fund |
| Invesco Us vs. T Rowe Price | Invesco Us vs. Transamerica Funds | Invesco Us vs. Versatile Bond Portfolio | Invesco Us vs. Nebraska Municipal Fund |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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