Correlation Between Calamos Strategic and Vanguard 500
Can any of the company-specific risk be diversified away by investing in both Calamos Strategic and Vanguard 500 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 Vanguard 500 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 Vanguard 500 Index, you can compare the effects of market volatilities on Calamos Strategic and Vanguard 500 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 Vanguard 500. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Strategic and Vanguard 500.
Diversification Opportunities for Calamos Strategic and Vanguard 500
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Calamos and Vanguard is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Strategic Total and Vanguard 500 Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard 500 Index 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 Vanguard 500. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard 500 Index has no effect on the direction of Calamos Strategic i.e., Calamos Strategic and Vanguard 500 go up and down completely randomly.
Pair Corralation between Calamos Strategic and Vanguard 500
Considering the 90-day investment horizon Calamos Strategic Total is expected to generate 1.07 times more return on investment than Vanguard 500. However, Calamos Strategic is 1.07 times more volatile than Vanguard 500 Index. It trades about 0.33 of its potential returns per unit of risk. Vanguard 500 Index is currently generating about 0.34 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. Vanguard 500 Index
Performance |
| Timeline |
| Calamos Strategic Total |
| Vanguard 500 Index |
Calamos Strategic and Vanguard 500 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Strategic and Vanguard 500
The main advantage of trading using opposite Calamos Strategic and Vanguard 500 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Strategic position performs unexpectedly, Vanguard 500 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 Vanguard 500 will offset losses from the drop in Vanguard 500'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 |
| Vanguard 500 vs. Vanguard Total Bond | Vanguard 500 vs. Vanguard Small Cap Index | Vanguard 500 vs. Vanguard Mid Cap Index | Vanguard 500 vs. Vanguard Extended Market |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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