Correlation Between Eaton Vance and Calamos Convertible
Can any of the company-specific risk be diversified away by investing in both Eaton Vance 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 Eaton Vance and Calamos Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Municipal and Calamos Convertible Opportunities, you can compare the effects of market volatilities on Eaton Vance 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 Eaton Vance with a short position of Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Calamos Convertible.
Diversification Opportunities for Eaton Vance and Calamos Convertible
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eaton and Calamos is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Municipal and Calamos Convertible Opportunit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible and Eaton Vance 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 Eaton Vance Municipal 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 Eaton Vance i.e., Eaton Vance and Calamos Convertible go up and down completely randomly.
Pair Corralation between Eaton Vance and Calamos Convertible
Considering the 90-day investment horizon Eaton Vance is expected to generate 1.9 times less return on investment than Calamos Convertible. But when comparing it to its historical volatility, Eaton Vance Municipal is 1.48 times less risky than Calamos Convertible. It trades about 0.11 of its potential returns per unit of risk. Calamos Convertible Opportunities is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 895.00 in Calamos Convertible Opportunities on September 2, 2024 and sell it today you would earn a total of 315.00 from holding Calamos Convertible Opportunities or generate 35.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Municipal vs. Calamos Convertible Opportunit
Performance |
| Timeline |
| Eaton Vance Municipal |
| Calamos Convertible |
Eaton Vance and Calamos Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Calamos Convertible
The main advantage of trading using opposite Eaton Vance and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance 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.| Eaton Vance vs. Munivest Fund | Eaton Vance vs. Blackrock Muniyield Quality | Eaton Vance vs. Blackrock Muniyield Quality | Eaton Vance vs. Blackrock Muniholdings Closed |
| Calamos Convertible vs. Calamos Dynamic Convertible | Calamos Convertible vs. Calamos Global Dynamic | Calamos Convertible vs. Calamos Strategic Total | 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |