Correlation Between Calamos Market and Western Asset
Can any of the company-specific risk be diversified away by investing in both Calamos Market and Western Asset 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 Market and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Market Neutral and Western Asset E, you can compare the effects of market volatilities on Calamos Market and Western Asset 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 Market with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Western Asset.
Diversification Opportunities for Calamos Market and Western Asset
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Calamos and Western is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Western Asset E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset E and Calamos Market 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 Market Neutral are associated (or correlated) with Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset E has no effect on the direction of Calamos Market i.e., Calamos Market and Western Asset go up and down completely randomly.
Pair Corralation between Calamos Market and Western Asset
Assuming the 90 days horizon Calamos Market Neutral is expected to generate 0.27 times more return on investment than Western Asset. However, Calamos Market Neutral is 3.75 times less risky than Western Asset. It trades about 0.29 of its potential returns per unit of risk. Western Asset E is currently generating about 0.05 per unit of risk. If you would invest 1,496 in Calamos Market Neutral on September 3, 2024 and sell it today you would earn a total of 9.00 from holding Calamos Market Neutral or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Market Neutral vs. Western Asset E
Performance |
| Timeline |
| Calamos Market Neutral |
| Western Asset E |
Calamos Market and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and Western Asset
The main advantage of trading using opposite Calamos Market and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Calamos Market vs. Calamos Market Neutral | Calamos Market vs. Absolute Convertible Arbitrage | Calamos Market vs. Aqr Diversified Arbitrage | Calamos Market vs. Palmer Square Ssi |
| Western Asset vs. Calamos Market Neutral | Western Asset vs. Ep Emerging Markets | Western Asset vs. The Hartford Emerging | Western Asset vs. Western Assets Emerging |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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