Correlation Between Calamos Short-term and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both Calamos Short-term and Sterling Capital 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 Sterling Capital 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 Sterling Capital Stratton, you can compare the effects of market volatilities on Calamos Short-term and Sterling Capital 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 Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Short-term and Sterling Capital.
Diversification Opportunities for Calamos Short-term and Sterling Capital
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Sterling is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Short Term Bond and Sterling Capital Stratton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Stratton 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 Sterling Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling Capital Stratton has no effect on the direction of Calamos Short-term i.e., Calamos Short-term and Sterling Capital go up and down completely randomly.
Pair Corralation between Calamos Short-term and Sterling Capital
Assuming the 90 days horizon Calamos Short-term is expected to generate 9.54 times less return on investment than Sterling Capital. But when comparing it to its historical volatility, Calamos Short Term Bond is 7.97 times less risky than Sterling Capital. It trades about 0.17 of its potential returns per unit of risk. Sterling Capital Stratton is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 6,781 in Sterling Capital Stratton on August 31, 2024 and sell it today you would earn a total of 341.00 from holding Sterling Capital Stratton or generate 5.03% 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. Sterling Capital Stratton
Performance |
| Timeline |
| Calamos Short Term |
| Sterling Capital Stratton |
Calamos Short-term and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Short-term and Sterling Capital
The main advantage of trading using opposite Calamos Short-term and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Short-term position performs unexpectedly, Sterling Capital 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 Sterling Capital will offset losses from the drop in Sterling Capital's long position.| Calamos Short-term vs. Us Government Securities | Calamos Short-term vs. Fidelity Series Government | Calamos Short-term vs. Us Government Securities | Calamos Short-term vs. Franklin Adjustable Government |
| Sterling Capital vs. California Bond Fund | Sterling Capital vs. Legg Mason Partners | Sterling Capital vs. Ab Impact Municipal | Sterling Capital vs. Calamos Short Term Bond |
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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