Correlation Between Calamos Short-term and Western Asset
Can any of the company-specific risk be diversified away by investing in both Calamos Short-term and Western Asset 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 Western Asset 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 Western Asset Pennsylvania, you can compare the effects of market volatilities on Calamos Short-term and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Short-term and Western Asset.
Diversification Opportunities for Calamos Short-term and Western Asset
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Western is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Short Term Bond and Western Asset Pennsylvania in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Pennsy 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Pennsy has no effect on the direction of Calamos Short-term i.e., Calamos Short-term and Western Asset go up and down completely randomly.
Pair Corralation between Calamos Short-term and Western Asset
Assuming the 90 days horizon Calamos Short Term Bond is expected to generate 0.7 times more return on investment than Western Asset. However, Calamos Short Term Bond is 1.43 times less risky than Western Asset. It trades about 0.13 of its potential returns per unit of risk. Western Asset Pennsylvania is currently generating about 0.06 per unit of risk. If you would invest 857.00 in Calamos Short Term Bond on September 3, 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. Western Asset Pennsylvania
Performance |
| Timeline |
| Calamos Short Term |
| Western Asset Pennsy |
Calamos Short-term and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Short-term and Western Asset
The main advantage of trading using opposite Calamos Short-term and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Short-term position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset'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 |
| Western Asset vs. First American Funds | Western Asset vs. John Hancock Money | Western Asset vs. Prudential Government Money | Western Asset vs. Franklin Government Money |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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