Correlation Between Calamos High and Calamos Opportunistic
Can any of the company-specific risk be diversified away by investing in both Calamos High and Calamos Opportunistic 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 Opportunistic 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 Opportunistic Value, you can compare the effects of market volatilities on Calamos High and Calamos Opportunistic 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 Opportunistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos High and Calamos Opportunistic.
Diversification Opportunities for Calamos High and Calamos Opportunistic
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Calamos is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Calamos High Income and Calamos Opportunistic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Opportunistic 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 Opportunistic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Opportunistic has no effect on the direction of Calamos High i.e., Calamos High and Calamos Opportunistic go up and down completely randomly.
Pair Corralation between Calamos High and Calamos Opportunistic
Assuming the 90 days horizon Calamos High is expected to generate 4.24 times less return on investment than Calamos Opportunistic. But when comparing it to its historical volatility, Calamos High Income is 7.2 times less risky than Calamos Opportunistic. It trades about 0.31 of its potential returns per unit of risk. Calamos Opportunistic Value is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,827 in Calamos Opportunistic Value on August 29, 2024 and sell it today you would earn a total of 69.00 from holding Calamos Opportunistic Value or generate 3.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos High Income vs. Calamos Opportunistic Value
Performance |
| Timeline |
| Calamos High Income |
| Calamos Opportunistic |
Calamos High and Calamos Opportunistic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos High and Calamos Opportunistic
The main advantage of trading using opposite Calamos High and Calamos Opportunistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos High position performs unexpectedly, Calamos Opportunistic 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 Opportunistic will offset losses from the drop in Calamos Opportunistic's 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 |
| Calamos Opportunistic vs. Legg Mason Partners | Calamos Opportunistic vs. Vanguard Emerging Markets | Calamos Opportunistic vs. T Rowe Price | Calamos Opportunistic vs. Arrow Managed Futures |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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