Correlation Between Calamos LongShort and Blackrock Floating
Can any of the company-specific risk be diversified away by investing in both Calamos LongShort and Blackrock Floating 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 Blackrock Floating 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 Blackrock Floating Rate, you can compare the effects of market volatilities on Calamos LongShort and Blackrock Floating 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 Blackrock Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos LongShort and Blackrock Floating.
Diversification Opportunities for Calamos LongShort and Blackrock Floating
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Blackrock is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Calamos LongShort Equity and Blackrock Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Floating Rate 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 Blackrock Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Floating Rate has no effect on the direction of Calamos LongShort i.e., Calamos LongShort and Blackrock Floating go up and down completely randomly.
Pair Corralation between Calamos LongShort and Blackrock Floating
Considering the 90-day investment horizon Calamos LongShort is expected to generate 7.3 times less return on investment than Blackrock Floating. But when comparing it to its historical volatility, Calamos LongShort Equity is 1.2 times less risky than Blackrock Floating. It trades about 0.02 of its potential returns per unit of risk. Blackrock Floating Rate is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,360 in Blackrock Floating Rate on August 24, 2024 and sell it today you would earn a total of 29.00 from holding Blackrock Floating Rate or generate 2.13% 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. Blackrock Floating Rate
Performance |
| Timeline |
| Calamos LongShort Equity |
| Blackrock Floating Rate |
Calamos LongShort and Blackrock Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos LongShort and Blackrock Floating
The main advantage of trading using opposite Calamos LongShort and Blackrock Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos LongShort position performs unexpectedly, Blackrock Floating 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 Blackrock Floating will offset losses from the drop in Blackrock Floating'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 |
| Blackrock Floating vs. MFS Investment Grade | Blackrock Floating vs. Eaton Vance National | Blackrock Floating vs. Blackrock Muniholdings Closed | Blackrock Floating vs. Blackrock Muniyield Quality |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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