Correlation Between Chartwell Small and Calamos Vertible
Can any of the company-specific risk be diversified away by investing in both Chartwell Small and Calamos Vertible 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 Chartwell Small and Calamos Vertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chartwell Small Cap and Calamos Vertible Fund, you can compare the effects of market volatilities on Chartwell Small and Calamos Vertible 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 Chartwell Small with a short position of Calamos Vertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chartwell Small and Calamos Vertible.
Diversification Opportunities for Chartwell Small and Calamos Vertible
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chartwell and Calamos is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Chartwell Small Cap and Calamos Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Vertible and Chartwell Small 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 Chartwell Small Cap are associated (or correlated) with Calamos Vertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Vertible has no effect on the direction of Chartwell Small i.e., Chartwell Small and Calamos Vertible go up and down completely randomly.
Pair Corralation between Chartwell Small and Calamos Vertible
Assuming the 90 days horizon Chartwell Small Cap is expected to generate 3.07 times more return on investment than Calamos Vertible. However, Chartwell Small is 3.07 times more volatile than Calamos Vertible Fund. It trades about 0.31 of its potential returns per unit of risk. Calamos Vertible Fund is currently generating about 0.53 per unit of risk. If you would invest 2,074 in Chartwell Small Cap on September 3, 2024 and sell it today you would earn a total of 227.00 from holding Chartwell Small Cap or generate 10.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chartwell Small Cap vs. Calamos Vertible Fund
Performance |
| Timeline |
| Chartwell Small Cap |
| Calamos Vertible |
Chartwell Small and Calamos Vertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chartwell Small and Calamos Vertible
The main advantage of trading using opposite Chartwell Small and Calamos Vertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chartwell Small position performs unexpectedly, Calamos Vertible 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 Calamos Vertible will offset losses from the drop in Calamos Vertible's long position.| Chartwell Small vs. Global Technology Portfolio | Chartwell Small vs. Dreyfus Technology Growth | Chartwell Small vs. Invesco Technology Fund | Chartwell Small vs. Firsthand Technology Opportunities |
| Calamos Vertible vs. Small Midcap Dividend Income | Calamos Vertible vs. Oklahoma College Savings | Calamos Vertible vs. The Hartford Small | Calamos Vertible vs. Chartwell Small Cap |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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