Correlation Between Calamos Evolving and Baird Strategic
Can any of the company-specific risk be diversified away by investing in both Calamos Evolving and Baird Strategic 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 Evolving and Baird Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Evolving World and Baird Strategic Municipal, you can compare the effects of market volatilities on Calamos Evolving and Baird Strategic 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 Evolving with a short position of Baird Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Evolving and Baird Strategic.
Diversification Opportunities for Calamos Evolving and Baird Strategic
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calamos and Baird is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Evolving World and Baird Strategic Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baird Strategic Municipal and Calamos Evolving 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 Evolving World are associated (or correlated) with Baird Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baird Strategic Municipal has no effect on the direction of Calamos Evolving i.e., Calamos Evolving and Baird Strategic go up and down completely randomly.
Pair Corralation between Calamos Evolving and Baird Strategic
Assuming the 90 days horizon Calamos Evolving World is expected to generate 6.17 times more return on investment than Baird Strategic. However, Calamos Evolving is 6.17 times more volatile than Baird Strategic Municipal. It trades about 0.06 of its potential returns per unit of risk. Baird Strategic Municipal is currently generating about 0.13 per unit of risk. If you would invest 1,636 in Calamos Evolving World on September 12, 2024 and sell it today you would earn a total of 328.00 from holding Calamos Evolving World or generate 20.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Calamos Evolving World vs. Baird Strategic Municipal
Performance |
| Timeline |
| Calamos Evolving World |
| Baird Strategic Municipal |
Calamos Evolving and Baird Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Evolving and Baird Strategic
The main advantage of trading using opposite Calamos Evolving and Baird Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Evolving position performs unexpectedly, Baird Strategic 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 Baird Strategic will offset losses from the drop in Baird Strategic's long position.| Calamos Evolving vs. Baird Strategic Municipal | Calamos Evolving vs. Franklin High Yield | Calamos Evolving vs. Dws Government Money | Calamos Evolving vs. Counterpoint Tactical Municipal |
| Baird Strategic vs. Tax Exempt Bond | Baird Strategic vs. Blackrock National Municipal | Baird Strategic vs. SCOR PK | Baird Strategic vs. Morningstar Unconstrained Allocation |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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