Correlation Between Calamos LongShort and Calamos Convertible
Can any of the company-specific risk be diversified away by investing in both Calamos LongShort 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 Calamos LongShort and Calamos Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos LongShort Equity and Calamos Convertible And, you can compare the effects of market volatilities on Calamos LongShort 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 Calamos LongShort with a short position of Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos LongShort and Calamos Convertible.
Diversification Opportunities for Calamos LongShort and Calamos Convertible
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Calamos is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Calamos LongShort Equity and Calamos Convertible And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible And and Calamos LongShort 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 LongShort Equity 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 And has no effect on the direction of Calamos LongShort i.e., Calamos LongShort and Calamos Convertible go up and down completely randomly.
Pair Corralation between Calamos LongShort and Calamos Convertible
Considering the 90-day investment horizon Calamos LongShort Equity is expected to under-perform the Calamos Convertible. But the stock apears to be less risky and, when comparing its historical volatility, Calamos LongShort Equity is 1.44 times less risky than Calamos Convertible. The stock trades about -0.03 of its potential returns per unit of risk. The Calamos Convertible And is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,199 in Calamos Convertible And on August 28, 2024 and sell it today you would earn a total of 34.00 from holding Calamos Convertible And or generate 2.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos LongShort Equity vs. Calamos Convertible And
Performance |
| Timeline |
| Calamos LongShort Equity |
| Calamos Convertible And |
Calamos LongShort and Calamos Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos LongShort and Calamos Convertible
The main advantage of trading using opposite Calamos LongShort and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos LongShort 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.| Calamos LongShort vs. Calamos Convertible Opportunities | Calamos LongShort vs. Calamos Convertible And | Calamos LongShort vs. Calamos Strategic Total | Calamos LongShort vs. Calamos Dynamic Convertible |
| Calamos Convertible vs. Calamos Global Dynamic | Calamos Convertible vs. Calamos Strategic Total | Calamos Convertible vs. Calamos LongShort Equity | Calamos Convertible vs. DTF Tax Free |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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