Correlation Between Calamos Short-term and Delaware Extended
Can any of the company-specific risk be diversified away by investing in both Calamos Short-term and Delaware Extended 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 Delaware Extended 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 Delaware Extended Duration, you can compare the effects of market volatilities on Calamos Short-term and Delaware Extended 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 Delaware Extended. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Short-term and Delaware Extended.
Diversification Opportunities for Calamos Short-term and Delaware Extended
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Delaware is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Short Term Bond and Delaware Extended Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delaware Extended 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 Delaware Extended. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delaware Extended has no effect on the direction of Calamos Short-term i.e., Calamos Short-term and Delaware Extended go up and down completely randomly.
Pair Corralation between Calamos Short-term and Delaware Extended
Assuming the 90 days horizon Calamos Short Term Bond is expected to generate 0.21 times more return on investment than Delaware Extended. However, Calamos Short Term Bond is 4.66 times less risky than Delaware Extended. It trades about 0.14 of its potential returns per unit of risk. Delaware Extended Duration is currently generating about 0.02 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Short Term Bond vs. Delaware Extended Duration
Performance |
| Timeline |
| Calamos Short Term |
| Delaware Extended |
Calamos Short-term and Delaware Extended Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Short-term and Delaware Extended
The main advantage of trading using opposite Calamos Short-term and Delaware Extended positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Short-term position performs unexpectedly, Delaware Extended 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 Delaware Extended will offset losses from the drop in Delaware Extended'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 |
| Delaware Extended vs. Optimum Small Mid Cap | Delaware Extended vs. Optimum Small Mid Cap | Delaware Extended vs. Ivy Apollo Multi Asset | Delaware Extended vs. Optimum Fixed Income |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |