Correlation Between Calamos High and Calamos Total
Can any of the company-specific risk be diversified away by investing in both Calamos High and Calamos Total 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 Calamos Total 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 Calamos Total Return, you can compare the effects of market volatilities on Calamos High and Calamos Total 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 Calamos Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos High and Calamos Total.
Diversification Opportunities for Calamos High and Calamos Total
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Calamos and Calamos is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Calamos High Income and Calamos Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Total Return 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 Calamos Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Total Return has no effect on the direction of Calamos High i.e., Calamos High and Calamos Total go up and down completely randomly.
Pair Corralation between Calamos High and Calamos Total
Assuming the 90 days horizon Calamos High is expected to generate 3.31 times less return on investment than Calamos Total. But when comparing it to its historical volatility, Calamos High Income is 1.34 times less risky than Calamos Total. It trades about 0.11 of its potential returns per unit of risk. Calamos Total Return is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 875.00 in Calamos Total Return on November 11, 2024 and sell it today you would earn a total of 15.00 from holding Calamos Total Return or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos High Income vs. Calamos Total Return
Performance |
| Timeline |
| Calamos High Income |
| Calamos Total Return |
Calamos High and Calamos Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos High and Calamos Total
The main advantage of trading using opposite Calamos High and Calamos Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos High position performs unexpectedly, Calamos Total 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 Calamos Total will offset losses from the drop in Calamos Total's long position.| Calamos High vs. Aqr Risk Parity | Calamos High vs. Litman Gregory Masters | Calamos High vs. Nuveen California High | Calamos High vs. Rbc Bluebay Global |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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