Correlation Between Eventide Healthcare and Calamos Convertible
Can any of the company-specific risk be diversified away by investing in both Eventide Healthcare 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 Eventide Healthcare and Calamos Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eventide Healthcare Life and Calamos Vertible Fund, you can compare the effects of market volatilities on Eventide Healthcare 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 Eventide Healthcare with a short position of Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eventide Healthcare and Calamos Convertible.
Diversification Opportunities for Eventide Healthcare and Calamos Convertible
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EVENTIDE and Calamos is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Eventide Healthcare Life and Calamos Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible and Eventide Healthcare 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 Eventide Healthcare Life 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 has no effect on the direction of Eventide Healthcare i.e., Eventide Healthcare and Calamos Convertible go up and down completely randomly.
Pair Corralation between Eventide Healthcare and Calamos Convertible
Assuming the 90 days horizon Eventide Healthcare is expected to generate 1.6 times less return on investment than Calamos Convertible. In addition to that, Eventide Healthcare is 2.74 times more volatile than Calamos Vertible Fund. It trades about 0.02 of its total potential returns per unit of risk. Calamos Vertible Fund is currently generating about 0.08 per unit of volatility. If you would invest 1,873 in Calamos Vertible Fund on September 3, 2024 and sell it today you would earn a total of 407.00 from holding Calamos Vertible Fund or generate 21.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eventide Healthcare Life vs. Calamos Vertible Fund
Performance |
| Timeline |
| Eventide Healthcare Life |
| Calamos Convertible |
Eventide Healthcare and Calamos Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eventide Healthcare and Calamos Convertible
The main advantage of trading using opposite Eventide Healthcare and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eventide Healthcare 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.| Eventide Healthcare vs. Vanguard Health Care | Eventide Healthcare vs. Vanguard Health Care | Eventide Healthcare vs. T Rowe Price | Eventide Healthcare vs. T Rowe Price |
| Calamos Convertible vs. T Rowe Price | Calamos Convertible vs. T Rowe Price | Calamos Convertible vs. Franklin Lifesmart 2050 | Calamos Convertible vs. Jp Morgan Smartretirement |
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 Stocks Directory module to find actively traded stocks across global markets.
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