Correlation Between Invesco Convertible and Calamos Convertible
Can any of the company-specific risk be diversified away by investing in both Invesco Convertible and Calamos Convertible 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 Invesco Convertible and Calamos Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Vertible Securities and Calamos Vertible Fund, you can compare the effects of market volatilities on Invesco Convertible and Calamos Convertible 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 Invesco Convertible with a short position of Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Convertible and Calamos Convertible.
Diversification Opportunities for Invesco Convertible and Calamos Convertible
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Invesco and Calamos is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Vertible Securities and Calamos Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible and Invesco Convertible 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 Invesco Vertible Securities are associated (or correlated) with Calamos Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Convertible has no effect on the direction of Invesco Convertible i.e., Invesco Convertible and Calamos Convertible go up and down completely randomly.
Pair Corralation between Invesco Convertible and Calamos Convertible
Assuming the 90 days horizon Invesco Convertible is expected to generate 1.04 times less return on investment than Calamos Convertible. But when comparing it to its historical volatility, Invesco Vertible Securities is 1.09 times less risky than Calamos Convertible. It trades about 0.07 of its potential returns per unit of risk. Calamos Vertible Fund is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,594 in Calamos Vertible Fund on October 21, 2024 and sell it today you would earn a total of 296.00 from holding Calamos Vertible Fund or generate 18.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Vertible Securities vs. Calamos Vertible Fund
Performance |
| Timeline |
| Invesco Vertible Sec |
| Calamos Convertible |
Invesco Convertible and Calamos Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Convertible and Calamos Convertible
The main advantage of trading using opposite Invesco Convertible and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Convertible position performs unexpectedly, Calamos Convertible 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 Convertible will offset losses from the drop in Calamos Convertible's long position.| Invesco Convertible vs. Rationalpier 88 Convertible | Invesco Convertible vs. Commodities Strategy Fund | Invesco Convertible vs. Tax Managed Large Cap | Invesco Convertible vs. Qs Large Cap |
| Calamos Convertible vs. International Investors Gold | Calamos Convertible vs. The Gold Bullion | Calamos Convertible vs. James Balanced Golden | Calamos Convertible vs. Precious Metals And |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges |