Correlation Between Calamos LongShort and Invesco High
Can any of the company-specific risk be diversified away by investing in both Calamos LongShort and Invesco High 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 Invesco High 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 Invesco High Income, you can compare the effects of market volatilities on Calamos LongShort and Invesco High 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 Invesco High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos LongShort and Invesco High.
Diversification Opportunities for Calamos LongShort and Invesco High
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Invesco is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Calamos LongShort Equity and Invesco High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco High Income 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 Invesco High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco High Income has no effect on the direction of Calamos LongShort i.e., Calamos LongShort and Invesco High go up and down completely randomly.
Pair Corralation between Calamos LongShort and Invesco High
Considering the 90-day investment horizon Calamos LongShort is expected to generate 1.8 times less return on investment than Invesco High. In addition to that, Calamos LongShort is 4.99 times more volatile than Invesco High Income. It trades about 0.02 of its total potential returns per unit of risk. Invesco High Income is currently generating about 0.2 per unit of volatility. If you would invest 751.00 in Invesco High Income on August 24, 2024 and sell it today you would earn a total of 4.00 from holding Invesco High Income or generate 0.53% 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. Invesco High Income
Performance |
| Timeline |
| Calamos LongShort Equity |
| Invesco High Income |
Calamos LongShort and Invesco High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos LongShort and Invesco High
The main advantage of trading using opposite Calamos LongShort and Invesco High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos LongShort position performs unexpectedly, Invesco High 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 Invesco High will offset losses from the drop in Invesco High'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 |
| Invesco High vs. MFS Investment Grade | Invesco High vs. Eaton Vance National | Invesco High vs. Nuveen California Select | Invesco High vs. Federated Premier Municipal |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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