Correlation Between Calamos Phineus and First Trust
Can any of the company-specific risk be diversified away by investing in both Calamos Phineus and First Trust 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 Phineus and First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Phineus Longshort and First Trust Mortgage, you can compare the effects of market volatilities on Calamos Phineus and First Trust 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 Phineus with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Phineus and First Trust.
Diversification Opportunities for Calamos Phineus and First Trust
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Calamos and First is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Phineus Longshort and First Trust Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Mortgage and Calamos Phineus 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 Phineus Longshort are associated (or correlated) with First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust Mortgage has no effect on the direction of Calamos Phineus i.e., Calamos Phineus and First Trust go up and down completely randomly.
Pair Corralation between Calamos Phineus and First Trust
Assuming the 90 days horizon Calamos Phineus Longshort is expected to under-perform the First Trust. But the mutual fund apears to be less risky and, when comparing its historical volatility, Calamos Phineus Longshort is 2.89 times less risky than First Trust. The mutual fund trades about -0.35 of its potential returns per unit of risk. The First Trust Mortgage is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,184 in First Trust Mortgage on November 28, 2024 and sell it today you would earn a total of 23.00 from holding First Trust Mortgage or generate 1.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Phineus Longshort vs. First Trust Mortgage
Performance |
| Timeline |
| Calamos Phineus Longshort |
| First Trust Mortgage |
Calamos Phineus and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Phineus and First Trust
The main advantage of trading using opposite Calamos Phineus and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Phineus position performs unexpectedly, First Trust 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 First Trust will offset losses from the drop in First Trust's long position.| Calamos Phineus vs. Simt High Yield | Calamos Phineus vs. Jpmorgan High Yield | Calamos Phineus vs. T Rowe Price | Calamos Phineus vs. Buffalo High Yield |
| First Trust vs. First Trust Senior | First Trust vs. Western Asset Global | First Trust vs. Western Asset Global | First Trust vs. BlackRock Floating Rate |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |