Correlation Between Calamos Strategic and Advent Claymore
Can any of the company-specific risk be diversified away by investing in both Calamos Strategic and Advent Claymore 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 Strategic and Advent Claymore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Strategic Total and Advent Claymore Convertible, you can compare the effects of market volatilities on Calamos Strategic and Advent Claymore 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 Strategic with a short position of Advent Claymore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Strategic and Advent Claymore.
Diversification Opportunities for Calamos Strategic and Advent Claymore
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Calamos and Advent is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Strategic Total and Advent Claymore Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advent Claymore Conv and Calamos Strategic 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 Strategic Total are associated (or correlated) with Advent Claymore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advent Claymore Conv has no effect on the direction of Calamos Strategic i.e., Calamos Strategic and Advent Claymore go up and down completely randomly.
Pair Corralation between Calamos Strategic and Advent Claymore
Considering the 90-day investment horizon Calamos Strategic Total is expected to generate 0.96 times more return on investment than Advent Claymore. However, Calamos Strategic Total is 1.04 times less risky than Advent Claymore. It trades about 0.12 of its potential returns per unit of risk. Advent Claymore Convertible is currently generating about 0.08 per unit of risk. If you would invest 1,206 in Calamos Strategic Total on August 29, 2024 and sell it today you would earn a total of 600.00 from holding Calamos Strategic Total or generate 49.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Strategic Total vs. Advent Claymore Convertible
Performance |
| Timeline |
| Calamos Strategic Total |
| Advent Claymore Conv |
Calamos Strategic and Advent Claymore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Strategic and Advent Claymore
The main advantage of trading using opposite Calamos Strategic and Advent Claymore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Strategic position performs unexpectedly, Advent Claymore 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 Advent Claymore will offset losses from the drop in Advent Claymore's long position.| Calamos Strategic vs. Calamos Convertible Opportunities | Calamos Strategic vs. Calamos Dynamic Convertible | Calamos Strategic vs. Calamos Global Dynamic | Calamos Strategic vs. Calamos LongShort Equity |
| Advent Claymore vs. Nuveen Global High | Advent Claymore vs. Blackstone Gso Strategic | Advent Claymore vs. Thornburg Income Builder | Advent Claymore vs. Western Asset Diversified |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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