Correlation Between Calamos Total and California Bond
Can any of the company-specific risk be diversified away by investing in both Calamos Total and California Bond 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 Total and California Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Total Return and California Bond Fund, you can compare the effects of market volatilities on Calamos Total and California Bond 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 Total with a short position of California Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Total and California Bond.
Diversification Opportunities for Calamos Total and California Bond
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and California is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Total Return and California Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on California Bond and Calamos Total 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 Total Return are associated (or correlated) with California Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of California Bond has no effect on the direction of Calamos Total i.e., Calamos Total and California Bond go up and down completely randomly.
Pair Corralation between Calamos Total and California Bond
Assuming the 90 days horizon Calamos Total Return is expected to generate 1.46 times more return on investment than California Bond. However, Calamos Total is 1.46 times more volatile than California Bond Fund. It trades about 0.04 of its potential returns per unit of risk. California Bond Fund is currently generating about 0.06 per unit of risk. If you would invest 847.00 in Calamos Total Return on September 1, 2024 and sell it today you would earn a total of 58.00 from holding Calamos Total Return or generate 6.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
Calamos Total Return vs. California Bond Fund
Performance |
| Timeline |
| Calamos Total Return |
| California Bond |
Calamos Total and California Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Total and California Bond
The main advantage of trading using opposite Calamos Total and California Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Total position performs unexpectedly, California Bond 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 California Bond will offset losses from the drop in California Bond's long position.| Calamos Total vs. Ab Bond Inflation | Calamos Total vs. Fidelity Advisor 529 | Calamos Total vs. Ab Bond Inflation | Calamos Total vs. Blackrock Inflation Protected |
| California Bond vs. Income Fund Income | California Bond vs. Usaa Nasdaq 100 | California Bond vs. Intermediate Term Bond Fund | California Bond vs. Usaa Intermediate Term |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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