Correlation Between Calamos International and Virtus Convertible
Can any of the company-specific risk be diversified away by investing in both Calamos International and Virtus 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 International and Virtus Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos International Small and Virtus Convertible, you can compare the effects of market volatilities on Calamos International and Virtus 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 International with a short position of Virtus Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos International and Virtus Convertible.
Diversification Opportunities for Calamos International and Virtus Convertible
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Calamos and Virtus is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Calamos International Small and Virtus Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Convertible and Calamos International 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 International Small are associated (or correlated) with Virtus Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Convertible has no effect on the direction of Calamos International i.e., Calamos International and Virtus Convertible go up and down completely randomly.
Pair Corralation between Calamos International and Virtus Convertible
Assuming the 90 days horizon Calamos International Small is expected to under-perform the Virtus Convertible. In addition to that, Calamos International is 1.25 times more volatile than Virtus Convertible. It trades about -0.03 of its total potential returns per unit of risk. Virtus Convertible is currently generating about 0.06 per unit of volatility. If you would invest 3,568 in Virtus Convertible on October 24, 2024 and sell it today you would earn a total of 28.00 from holding Virtus Convertible or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Calamos International Small vs. Virtus Convertible
Performance |
| Timeline |
| Calamos International |
| Virtus Convertible |
Calamos International and Virtus Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos International and Virtus Convertible
The main advantage of trading using opposite Calamos International and Virtus Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos International position performs unexpectedly, Virtus 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 Virtus Convertible will offset losses from the drop in Virtus Convertible's long position.| Calamos International vs. Federated High Yield | Calamos International vs. Ab High Income | Calamos International vs. Multi Manager High Yield | Calamos International vs. Ab High Income |
| Virtus Convertible vs. Fidelity Flex Servative | Virtus Convertible vs. Siit Ultra Short | Virtus Convertible vs. Delaware Investments Ultrashort | Virtus Convertible vs. Rbc Short Duration |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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