Correlation Between Calamos Strategic and Fidelity Advisor
Can any of the company-specific risk be diversified away by investing in both Calamos Strategic and Fidelity Advisor 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 Fidelity Advisor 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 Fidelity Advisor Energy, you can compare the effects of market volatilities on Calamos Strategic and Fidelity Advisor 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 Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Strategic and Fidelity Advisor.
Diversification Opportunities for Calamos Strategic and Fidelity Advisor
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Fidelity is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Strategic Total and Fidelity Advisor Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Energy 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 Fidelity Advisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advisor Energy has no effect on the direction of Calamos Strategic i.e., Calamos Strategic and Fidelity Advisor go up and down completely randomly.
Pair Corralation between Calamos Strategic and Fidelity Advisor
Considering the 90-day investment horizon Calamos Strategic is expected to generate 1.47 times less return on investment than Fidelity Advisor. But when comparing it to its historical volatility, Calamos Strategic Total is 1.36 times less risky than Fidelity Advisor. It trades about 0.33 of its potential returns per unit of risk. Fidelity Advisor Energy is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 4,707 in Fidelity Advisor Energy on September 2, 2024 and sell it today you would earn a total of 394.00 from holding Fidelity Advisor Energy or generate 8.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Strategic Total vs. Fidelity Advisor Energy
Performance |
| Timeline |
| Calamos Strategic Total |
| Fidelity Advisor Energy |
Calamos Strategic and Fidelity Advisor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Strategic and Fidelity Advisor
The main advantage of trading using opposite Calamos Strategic and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Strategic position performs unexpectedly, Fidelity Advisor 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 Fidelity Advisor will offset losses from the drop in Fidelity Advisor'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 |
| Fidelity Advisor vs. Nuveen Arizona Municipal | Fidelity Advisor vs. Alliancebernstein National Municipal | Fidelity Advisor vs. Franklin High Yield | Fidelity Advisor vs. Federated Ohio 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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