Correlation Between Calamos Short-term and Aig Government
Can any of the company-specific risk be diversified away by investing in both Calamos Short-term and Aig Government 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 Aig Government 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 Aig Government Money, you can compare the effects of market volatilities on Calamos Short-term and Aig Government 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 Aig Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Short-term and Aig Government.
Diversification Opportunities for Calamos Short-term and Aig Government
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Aig is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Short Term Bond and Aig Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aig Government Money 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 Aig Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aig Government Money has no effect on the direction of Calamos Short-term i.e., Calamos Short-term and Aig Government go up and down completely randomly.
Pair Corralation between Calamos Short-term and Aig Government
Assuming the 90 days horizon Calamos Short Term Bond is expected to generate 0.84 times more return on investment than Aig Government. However, Calamos Short Term Bond is 1.19 times less risky than Aig Government. It trades about 0.13 of its potential returns per unit of risk. Aig Government Money is currently generating about 0.05 per unit of risk. If you would invest 857.00 in Calamos Short Term Bond on September 5, 2024 and sell it today you would earn a total of 97.00 from holding Calamos Short Term Bond or generate 11.32% 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. Aig Government Money
Performance |
| Timeline |
| Calamos Short Term |
| Aig Government Money |
Calamos Short-term and Aig Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Short-term and Aig Government
The main advantage of trading using opposite Calamos Short-term and Aig Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Short-term position performs unexpectedly, Aig Government 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 Aig Government will offset losses from the drop in Aig Government's long position.| Calamos Short-term vs. Aig Government Money | Calamos Short-term vs. Lord Abbett Government | Calamos Short-term vs. Us Government Securities | Calamos Short-term vs. Virtus Seix Government |
| Aig Government vs. Simt Multi Asset Accumulation | Aig Government vs. Saat Market Growth | Aig Government vs. Simt Real Return | Aig Government vs. Simt Small Cap |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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