Correlation Between Calamos Short-term and Bbh Intermediate
Can any of the company-specific risk be diversified away by investing in both Calamos Short-term and Bbh Intermediate 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 Short-term and Bbh Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Short Term Bond and Bbh Intermediate Municipal, you can compare the effects of market volatilities on Calamos Short-term and Bbh Intermediate 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 Short-term with a short position of Bbh Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Short-term and Bbh Intermediate.
Diversification Opportunities for Calamos Short-term and Bbh Intermediate
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Bbh is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Short Term Bond and Bbh Intermediate Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bbh Intermediate Mun and Calamos Short-term 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 Short Term Bond are associated (or correlated) with Bbh Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bbh Intermediate Mun has no effect on the direction of Calamos Short-term i.e., Calamos Short-term and Bbh Intermediate go up and down completely randomly.
Pair Corralation between Calamos Short-term and Bbh Intermediate
Assuming the 90 days horizon Calamos Short Term Bond is expected to generate 0.9 times more return on investment than Bbh Intermediate. However, Calamos Short Term Bond is 1.11 times less risky than Bbh Intermediate. It trades about 0.14 of its potential returns per unit of risk. Bbh Intermediate Municipal is currently generating about 0.1 per unit of risk. If you would invest 856.00 in Calamos Short Term Bond on September 2, 2024 and sell it today you would earn a total of 98.00 from holding Calamos Short Term Bond or generate 11.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Short Term Bond vs. Bbh Intermediate Municipal
Performance |
| Timeline |
| Calamos Short Term |
| Bbh Intermediate Mun |
Calamos Short-term and Bbh Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Short-term and Bbh Intermediate
The main advantage of trading using opposite Calamos Short-term and Bbh Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Short-term position performs unexpectedly, Bbh Intermediate 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 Bbh Intermediate will offset losses from the drop in Bbh Intermediate's long position.| Calamos Short-term vs. Lord Abbett Small | Calamos Short-term vs. Heartland Value Plus | Calamos Short-term vs. Mid Cap Value Profund | Calamos Short-term vs. Vanguard Small Cap Value |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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