Correlation Between Calamos Strategic and Blackrock Muniyield
Can any of the company-specific risk be diversified away by investing in both Calamos Strategic and Blackrock Muniyield 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 Blackrock Muniyield 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 Blackrock Muniyield New, you can compare the effects of market volatilities on Calamos Strategic and Blackrock Muniyield 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 Blackrock Muniyield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Strategic and Blackrock Muniyield.
Diversification Opportunities for Calamos Strategic and Blackrock Muniyield
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Blackrock is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Strategic Total and Blackrock Muniyield New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Muniyield New 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 Blackrock Muniyield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Muniyield New has no effect on the direction of Calamos Strategic i.e., Calamos Strategic and Blackrock Muniyield go up and down completely randomly.
Pair Corralation between Calamos Strategic and Blackrock Muniyield
Considering the 90-day investment horizon Calamos Strategic Total is expected to generate 1.46 times more return on investment than Blackrock Muniyield. However, Calamos Strategic is 1.46 times more volatile than Blackrock Muniyield New. It trades about 0.11 of its potential returns per unit of risk. Blackrock Muniyield New is currently generating about 0.07 per unit of risk. If you would invest 1,265 in Calamos Strategic Total on August 31, 2024 and sell it today you would earn a total of 549.00 from holding Calamos Strategic Total or generate 43.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Strategic Total vs. Blackrock Muniyield New
Performance |
| Timeline |
| Calamos Strategic Total |
| Blackrock Muniyield New |
Calamos Strategic and Blackrock Muniyield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Strategic and Blackrock Muniyield
The main advantage of trading using opposite Calamos Strategic and Blackrock Muniyield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Strategic position performs unexpectedly, Blackrock Muniyield 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 Blackrock Muniyield will offset losses from the drop in Blackrock Muniyield'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 |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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