Correlation Between Calamos Short-term and Great-west
Can any of the company-specific risk be diversified away by investing in both Calamos Short-term and Great-west 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 Great-west 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 Great West Government Mortgage, you can compare the effects of market volatilities on Calamos Short-term and Great-west 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 Great-west. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Short-term and Great-west.
Diversification Opportunities for Calamos Short-term and Great-west
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Great-west is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Short Term Bond and Great West Government Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Government 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 Great-west. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West Government has no effect on the direction of Calamos Short-term i.e., Calamos Short-term and Great-west go up and down completely randomly.
Pair Corralation between Calamos Short-term and Great-west
Assuming the 90 days horizon Calamos Short-term is expected to generate 1.01 times less return on investment than Great-west. But when comparing it to its historical volatility, Calamos Short Term Bond is 2.67 times less risky than Great-west. It trades about 0.16 of its potential returns per unit of risk. Great West Government Mortgage is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 799.00 in Great West Government Mortgage on September 3, 2024 and sell it today you would earn a total of 46.00 from holding Great West Government Mortgage or generate 5.76% 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. Great West Government Mortgage
Performance |
| Timeline |
| Calamos Short Term |
| Great West Government |
Calamos Short-term and Great-west Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Short-term and Great-west
The main advantage of trading using opposite Calamos Short-term and Great-west positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Short-term position performs unexpectedly, Great-west 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 Great-west will offset losses from the drop in Great-west'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 |
| Great-west vs. Vanguard Intermediate Term Government | Great-west vs. Us Government Securities | Great-west vs. Us Government Securities | Great-west vs. Us Government Securities |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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