Correlation Between Calamos Strategic and Alternative Credit
Can any of the company-specific risk be diversified away by investing in both Calamos Strategic and Alternative Credit 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 Alternative Credit 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 Alternative Credit Income, you can compare the effects of market volatilities on Calamos Strategic and Alternative Credit 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 Alternative Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Strategic and Alternative Credit.
Diversification Opportunities for Calamos Strategic and Alternative Credit
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Alternative is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Strategic Total and Alternative Credit Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alternative Credit 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 Alternative Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alternative Credit Income has no effect on the direction of Calamos Strategic i.e., Calamos Strategic and Alternative Credit go up and down completely randomly.
Pair Corralation between Calamos Strategic and Alternative Credit
Considering the 90-day investment horizon Calamos Strategic Total is expected to generate 2.78 times more return on investment than Alternative Credit. However, Calamos Strategic is 2.78 times more volatile than Alternative Credit Income. It trades about 0.15 of its potential returns per unit of risk. Alternative Credit Income is currently generating about 0.06 per unit of risk. If you would invest 1,338 in Calamos Strategic Total on August 26, 2024 and sell it today you would earn a total of 463.00 from holding Calamos Strategic Total or generate 34.6% 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. Alternative Credit Income
Performance |
| Timeline |
| Calamos Strategic Total |
| Alternative Credit Income |
Calamos Strategic and Alternative Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Strategic and Alternative Credit
The main advantage of trading using opposite Calamos Strategic and Alternative Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Strategic position performs unexpectedly, Alternative Credit 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 Alternative Credit will offset losses from the drop in Alternative Credit'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 |
| Alternative Credit vs. Prudential Real Estate | Alternative Credit vs. Simt Real Estate | Alternative Credit vs. Tiaa Cref Real Estate | Alternative Credit vs. Forum Real Estate |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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