Correlation Between Calamos Strategic and Federated Hermes
Can any of the company-specific risk be diversified away by investing in both Calamos Strategic and Federated Hermes 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 Federated Hermes 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 Federated Hermes Conservative, you can compare the effects of market volatilities on Calamos Strategic and Federated Hermes 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 Federated Hermes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Strategic and Federated Hermes.
Diversification Opportunities for Calamos Strategic and Federated Hermes
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Federated is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Strategic Total and Federated Hermes Conservative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Hermes Con 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 Federated Hermes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Hermes Con has no effect on the direction of Calamos Strategic i.e., Calamos Strategic and Federated Hermes go up and down completely randomly.
Pair Corralation between Calamos Strategic and Federated Hermes
If you would invest 1,717 in Calamos Strategic Total on September 2, 2024 and sell it today you would earn a total of 97.00 from holding Calamos Strategic Total or generate 5.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Strategic Total vs. Federated Hermes Conservative
Performance |
| Timeline |
| Calamos Strategic Total |
| Federated Hermes Con |
Calamos Strategic and Federated Hermes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Strategic and Federated Hermes
The main advantage of trading using opposite Calamos Strategic and Federated Hermes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Strategic position performs unexpectedly, Federated Hermes 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 Federated Hermes will offset losses from the drop in Federated Hermes' 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 |
| Federated Hermes vs. Investec Emerging Markets | Federated Hermes vs. Franklin Emerging Market | Federated Hermes vs. Eagle Mlp Strategy | Federated Hermes vs. Ashmore Emerging Markets |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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