Correlation Between Calamos Strategic and Power Floating
Can any of the company-specific risk be diversified away by investing in both Calamos Strategic and Power Floating 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 Power Floating 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 Power Floating Rate, you can compare the effects of market volatilities on Calamos Strategic and Power Floating 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 Power Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Strategic and Power Floating.
Diversification Opportunities for Calamos Strategic and Power Floating
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and Power is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Strategic Total and Power Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Power Floating Rate 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 Power Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Power Floating Rate has no effect on the direction of Calamos Strategic i.e., Calamos Strategic and Power Floating go up and down completely randomly.
Pair Corralation between Calamos Strategic and Power Floating
Considering the 90-day investment horizon Calamos Strategic Total is expected to generate 10.86 times more return on investment than Power Floating. However, Calamos Strategic is 10.86 times more volatile than Power Floating Rate. It trades about 0.33 of its potential returns per unit of risk. Power Floating Rate is currently generating about 0.46 per unit of risk. 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Strategic Total vs. Power Floating Rate
Performance |
| Timeline |
| Calamos Strategic Total |
| Power Floating Rate |
Calamos Strategic and Power Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Strategic and Power Floating
The main advantage of trading using opposite Calamos Strategic and Power Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Strategic position performs unexpectedly, Power Floating 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 Power Floating will offset losses from the drop in Power Floating'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 |
| Power Floating vs. T Rowe Price | Power Floating vs. Artisan Small Cap | Power Floating vs. Vanguard Small Cap Growth | Power Floating vs. Baird Smallmid Cap |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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