Correlation Between Franklin Emerging and Calamos Convertible
Can any of the company-specific risk be diversified away by investing in both Franklin Emerging 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 Franklin Emerging and Calamos Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Emerging Market and Calamos Convertible And, you can compare the effects of market volatilities on Franklin Emerging 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 Franklin Emerging with a short position of Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Emerging and Calamos Convertible.
Diversification Opportunities for Franklin Emerging and Calamos Convertible
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and Calamos is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Emerging Market 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 Franklin Emerging 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 Franklin Emerging Market 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 Franklin Emerging i.e., Franklin Emerging and Calamos Convertible go up and down completely randomly.
Pair Corralation between Franklin Emerging and Calamos Convertible
Assuming the 90 days horizon Franklin Emerging is expected to generate 3.25 times less return on investment than Calamos Convertible. But when comparing it to its historical volatility, Franklin Emerging Market is 4.14 times less risky than Calamos Convertible. It trades about 0.24 of its potential returns per unit of risk. Calamos Convertible And is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,120 in Calamos Convertible And on August 28, 2024 and sell it today you would earn a total of 113.00 from holding Calamos Convertible And or generate 10.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Emerging Market vs. Calamos Convertible And
Performance |
| Timeline |
| Franklin Emerging Market |
| Calamos Convertible And |
Franklin Emerging and Calamos Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Emerging and Calamos Convertible
The main advantage of trading using opposite Franklin Emerging and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Emerging 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.| Franklin Emerging vs. Chartwell Short Duration | Franklin Emerging vs. Ultra Short Term Fixed | Franklin Emerging vs. Maryland Tax Free Bond | Franklin Emerging vs. Bbh Intermediate Municipal |
| Calamos Convertible vs. Calamos Global Dynamic | Calamos Convertible vs. Calamos Strategic Total | Calamos Convertible vs. Calamos LongShort Equity | Calamos Convertible vs. DTF Tax Free |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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