Correlation Between Calamos Strategic and Putnam High
Can any of the company-specific risk be diversified away by investing in both Calamos Strategic and Putnam High 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 Putnam High 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 Putnam High Income, you can compare the effects of market volatilities on Calamos Strategic and Putnam High 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 Putnam High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Strategic and Putnam High.
Diversification Opportunities for Calamos Strategic and Putnam High
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Putnam is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Strategic Total and Putnam High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam High Income 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 Putnam High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam High Income has no effect on the direction of Calamos Strategic i.e., Calamos Strategic and Putnam High go up and down completely randomly.
Pair Corralation between Calamos Strategic and Putnam High
Considering the 90-day investment horizon Calamos Strategic Total is expected to generate 1.89 times more return on investment than Putnam High. However, Calamos Strategic is 1.89 times more volatile than Putnam High Income. It trades about 0.15 of its potential returns per unit of risk. Putnam High Income is currently generating about 0.18 per unit of risk. If you would invest 1,750 in Calamos Strategic Total on August 26, 2024 and sell it today you would earn a total of 51.00 from holding Calamos Strategic Total or generate 2.91% 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. Putnam High Income
Performance |
| Timeline |
| Calamos Strategic Total |
| Putnam High Income |
Calamos Strategic and Putnam High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Strategic and Putnam High
The main advantage of trading using opposite Calamos Strategic and Putnam High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Strategic position performs unexpectedly, Putnam High 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 Putnam High will offset losses from the drop in Putnam High's long position.| Calamos Strategic vs. Allspring Income Opportunities | Calamos Strategic vs. Allspring Global Dividend | Calamos Strategic vs. Blackstone Gso Senior | Calamos Strategic vs. John Hancock Preferred |
| Putnam High vs. Calamos Convertible Opportunities | Putnam High vs. Calamos Global Dynamic | Putnam High vs. Calamos Strategic Total | Putnam High vs. Calamos LongShort Equity |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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