Correlation Between Allspring Global and Calamos Strategic
Can any of the company-specific risk be diversified away by investing in both Allspring Global and Calamos Strategic 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 Allspring Global and Calamos Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allspring Global Dividend and Calamos Strategic Total, you can compare the effects of market volatilities on Allspring Global and Calamos Strategic 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 Allspring Global with a short position of Calamos Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allspring Global and Calamos Strategic.
Diversification Opportunities for Allspring Global and Calamos Strategic
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allspring and Calamos is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Allspring Global Dividend and Calamos Strategic Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Strategic Total and Allspring Global 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 Allspring Global Dividend are associated (or correlated) with Calamos Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Strategic Total has no effect on the direction of Allspring Global i.e., Allspring Global and Calamos Strategic go up and down completely randomly.
Pair Corralation between Allspring Global and Calamos Strategic
Considering the 90-day investment horizon Allspring Global is expected to generate 2.04 times less return on investment than Calamos Strategic. But when comparing it to its historical volatility, Allspring Global Dividend is 1.07 times less risky than Calamos Strategic. It trades about 0.05 of its potential returns per unit of risk. Calamos Strategic Total is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,207 in Calamos Strategic Total on August 25, 2024 and sell it today you would earn a total of 594.00 from holding Calamos Strategic Total or generate 49.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allspring Global Dividend vs. Calamos Strategic Total
Performance |
| Timeline |
| Allspring Global Dividend |
| Calamos Strategic Total |
Allspring Global and Calamos Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allspring Global and Calamos Strategic
The main advantage of trading using opposite Allspring Global and Calamos Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allspring Global position performs unexpectedly, Calamos Strategic 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 Strategic will offset losses from the drop in Calamos Strategic's long position.| Allspring Global vs. Allspring Multi Sector | Allspring Global vs. BNY Mellon High | Allspring Global vs. Pioneer High Income | Allspring Global vs. Allspring Utilities And |
| Calamos Strategic vs. Allspring Income Opportunities | Calamos Strategic vs. Allspring Global Dividend | Calamos Strategic vs. Blackstone Gso Senior | Calamos Strategic vs. John Hancock Preferred |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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