Correlation Between Calamos Market and Absolute Convertible
Can any of the company-specific risk be diversified away by investing in both Calamos Market and Absolute 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 Market and Absolute Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Market Neutral and Absolute Convertible Arbitrage, you can compare the effects of market volatilities on Calamos Market and Absolute 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 Market with a short position of Absolute Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Absolute Convertible.
Diversification Opportunities for Calamos Market and Absolute Convertible
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Calamos and Absolute is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Absolute Convertible Arbitrage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Absolute Convertible and Calamos Market 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 Market Neutral are associated (or correlated) with Absolute Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Absolute Convertible has no effect on the direction of Calamos Market i.e., Calamos Market and Absolute Convertible go up and down completely randomly.
Pair Corralation between Calamos Market and Absolute Convertible
Assuming the 90 days horizon Calamos Market is expected to generate 1.0 times less return on investment than Absolute Convertible. In addition to that, Calamos Market is 2.46 times more volatile than Absolute Convertible Arbitrage. It trades about 0.11 of its total potential returns per unit of risk. Absolute Convertible Arbitrage is currently generating about 0.27 per unit of volatility. If you would invest 1,020 in Absolute Convertible Arbitrage on November 27, 2024 and sell it today you would earn a total of 112.00 from holding Absolute Convertible Arbitrage or generate 10.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Market Neutral vs. Absolute Convertible Arbitrage
Performance |
| Timeline |
| Calamos Market Neutral |
| Absolute Convertible |
Calamos Market and Absolute Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and Absolute Convertible
The main advantage of trading using opposite Calamos Market and Absolute Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, Absolute 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 Absolute Convertible will offset losses from the drop in Absolute Convertible's long position.| Calamos Market vs. Calamos Antetokounmpo Sustainable | Calamos Market vs. Innealta Capital Sector | Calamos Market vs. Calamos Antetokounmpo Sustainable | Calamos Market vs. Calamos Antetokounmpo Sustainable |
| Absolute Convertible vs. T Rowe Price | Absolute Convertible vs. Barings Active Short | Absolute Convertible vs. Touchstone Ultra Short | Absolute Convertible vs. Metropolitan West Ultra |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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