Correlation Between Calamos Short-term and Federated Kaufmann
Can any of the company-specific risk be diversified away by investing in both Calamos Short-term and Federated Kaufmann 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 Federated Kaufmann 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 Federated Kaufmann Small, you can compare the effects of market volatilities on Calamos Short-term and Federated Kaufmann 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 Federated Kaufmann. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Short-term and Federated Kaufmann.
Diversification Opportunities for Calamos Short-term and Federated Kaufmann
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Federated is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Short Term Bond and Federated Kaufmann Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Kaufmann Small 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 Federated Kaufmann. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Kaufmann Small has no effect on the direction of Calamos Short-term i.e., Calamos Short-term and Federated Kaufmann go up and down completely randomly.
Pair Corralation between Calamos Short-term and Federated Kaufmann
Assuming the 90 days horizon Calamos Short-term is expected to generate 2.72 times less return on investment than Federated Kaufmann. But when comparing it to its historical volatility, Calamos Short Term Bond is 7.08 times less risky than Federated Kaufmann. It trades about 0.13 of its potential returns per unit of risk. Federated Kaufmann Small is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,165 in Federated Kaufmann Small on September 3, 2024 and sell it today you would earn a total of 1,244 from holding Federated Kaufmann Small or generate 29.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Short Term Bond vs. Federated Kaufmann Small
Performance |
| Timeline |
| Calamos Short Term |
| Federated Kaufmann Small |
Calamos Short-term and Federated Kaufmann Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Short-term and Federated Kaufmann
The main advantage of trading using opposite Calamos Short-term and Federated Kaufmann positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Short-term position performs unexpectedly, Federated Kaufmann 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 Federated Kaufmann will offset losses from the drop in Federated Kaufmann's long position.| Calamos Short-term vs. Goldman Sachs Clean | Calamos Short-term vs. Vy Goldman Sachs | Calamos Short-term vs. Franklin Gold Precious | Calamos Short-term vs. Gabelli Gold Fund |
| Federated Kaufmann vs. The Hartford Midcap | Federated Kaufmann vs. Mfs Emerging Markets | Federated Kaufmann vs. Wells Fargo Special | Federated Kaufmann vs. Washington Mutual Investors |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |