Correlation Between Calamos Growth and Putnam Convertible
Can any of the company-specific risk be diversified away by investing in both Calamos Growth and Putnam Convertible 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 Growth and Putnam Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Growth Fund and Putnam Vertible Securities, you can compare the effects of market volatilities on Calamos Growth and Putnam Convertible 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 Growth with a short position of Putnam Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Growth and Putnam Convertible.
Diversification Opportunities for Calamos Growth and Putnam Convertible
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Putnam is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Growth Fund and Putnam Vertible Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Vertible Secu and Calamos Growth 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 Growth Fund are associated (or correlated) with Putnam Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Vertible Secu has no effect on the direction of Calamos Growth i.e., Calamos Growth and Putnam Convertible go up and down completely randomly.
Pair Corralation between Calamos Growth and Putnam Convertible
Assuming the 90 days horizon Calamos Growth is expected to generate 1.28 times less return on investment than Putnam Convertible. In addition to that, Calamos Growth is 1.75 times more volatile than Putnam Vertible Securities. It trades about 0.06 of its total potential returns per unit of risk. Putnam Vertible Securities is currently generating about 0.14 per unit of volatility. If you would invest 2,609 in Putnam Vertible Securities on October 27, 2024 and sell it today you would earn a total of 44.00 from holding Putnam Vertible Securities or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Growth Fund vs. Putnam Vertible Securities
Performance |
| Timeline |
| Calamos Growth |
| Putnam Vertible Secu |
Calamos Growth and Putnam Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Growth and Putnam Convertible
The main advantage of trading using opposite Calamos Growth and Putnam Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Growth position performs unexpectedly, Putnam Convertible 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 Putnam Convertible will offset losses from the drop in Putnam Convertible's long position.| Calamos Growth vs. Baron Real Estate | Calamos Growth vs. Redwood Real Estate | Calamos Growth vs. Short Real Estate | Calamos Growth vs. Simt Real Estate |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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