Correlation Between Calamos Market and Western Assets
Can any of the company-specific risk be diversified away by investing in both Calamos Market and Western Assets 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 Assets 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 Assets Emerging, you can compare the effects of market volatilities on Calamos Market and Western Assets 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 Assets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Western Assets.
Diversification Opportunities for Calamos Market and Western Assets
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calamos and Western is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Western Assets Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Assets Emerging 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 Assets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Assets Emerging has no effect on the direction of Calamos Market i.e., Calamos Market and Western Assets go up and down completely randomly.
Pair Corralation between Calamos Market and Western Assets
Assuming the 90 days horizon Calamos Market is expected to generate 1.26 times less return on investment than Western Assets. But when comparing it to its historical volatility, Calamos Market Neutral is 3.08 times less risky than Western Assets. It trades about 0.22 of its potential returns per unit of risk. Western Assets Emerging is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,083 in Western Assets Emerging on September 12, 2024 and sell it today you would earn a total of 6.00 from holding Western Assets Emerging or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Calamos Market Neutral vs. Western Assets Emerging
Performance |
| Timeline |
| Calamos Market Neutral |
| Western Assets Emerging |
Calamos Market and Western Assets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and Western Assets
The main advantage of trading using opposite Calamos Market and Western Assets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, Western Assets 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 Assets will offset losses from the drop in Western Assets' long position.| Calamos Market vs. Prudential Health Sciences | Calamos Market vs. Health Biotchnology Portfolio | Calamos Market vs. Blackrock Health Sciences | Calamos Market vs. Tekla Healthcare Opportunities |
| Western Assets vs. Cb Large Cap | Western Assets vs. American Mutual Fund | Western Assets vs. Americafirst Large Cap | Western Assets vs. Dodge Cox Stock |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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