Correlation Between Western Asset and Calamos Convertible
Can any of the company-specific risk be diversified away by investing in both Western Asset and Calamos 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 Western Asset and Calamos Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Global and Calamos Convertible And, you can compare the effects of market volatilities on Western Asset and Calamos 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 Western Asset with a short position of Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Calamos Convertible.
Diversification Opportunities for Western Asset and Calamos Convertible
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Western and Calamos is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Global and Calamos Convertible And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible And and Western Asset 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 Western Asset Global are associated (or correlated) with Calamos Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Convertible And has no effect on the direction of Western Asset i.e., Western Asset and Calamos Convertible go up and down completely randomly.
Pair Corralation between Western Asset and Calamos Convertible
Considering the 90-day investment horizon Western Asset is expected to generate 1.35 times less return on investment than Calamos Convertible. But when comparing it to its historical volatility, Western Asset Global is 1.08 times less risky than Calamos Convertible. It trades about 0.04 of its potential returns per unit of risk. Calamos Convertible And is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 975.00 in Calamos Convertible And on September 3, 2024 and sell it today you would earn a total of 249.00 from holding Calamos Convertible And or generate 25.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset Global vs. Calamos Convertible And
Performance |
| Timeline |
| Western Asset Global |
| Calamos Convertible And |
Western Asset and Calamos Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Calamos Convertible
The main advantage of trading using opposite Western Asset and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Calamos 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 Calamos Convertible will offset losses from the drop in Calamos Convertible's long position.| Western Asset vs. Tekla Healthcare Investors | Western Asset vs. Tekla Life Sciences | Western Asset vs. Cohen Steers Reit | Western Asset vs. XAI Octagon Floating |
| Calamos Convertible vs. Calamos Global Dynamic | Calamos Convertible vs. Calamos Strategic Total | Calamos Convertible vs. Calamos Dynamic Convertible | Calamos Convertible vs. Calamos LongShort Equity |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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