Correlation Between Franklin Emerging and Calamos Opportunistic
Can any of the company-specific risk be diversified away by investing in both Franklin Emerging and Calamos Opportunistic 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 Opportunistic 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 Opportunistic Value, you can compare the effects of market volatilities on Franklin Emerging and Calamos Opportunistic 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 Opportunistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Emerging and Calamos Opportunistic.
Diversification Opportunities for Franklin Emerging and Calamos Opportunistic
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Calamos is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Emerging Market and Calamos Opportunistic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Opportunistic 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 Opportunistic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Opportunistic has no effect on the direction of Franklin Emerging i.e., Franklin Emerging and Calamos Opportunistic go up and down completely randomly.
Pair Corralation between Franklin Emerging and Calamos Opportunistic
Assuming the 90 days horizon Franklin Emerging Market is expected to generate 0.14 times more return on investment than Calamos Opportunistic. However, Franklin Emerging Market is 7.28 times less risky than Calamos Opportunistic. It trades about 0.16 of its potential returns per unit of risk. Calamos Opportunistic Value is currently generating about -0.18 per unit of risk. If you would invest 1,154 in Franklin Emerging Market on October 21, 2024 and sell it today you would earn a total of 8.00 from holding Franklin Emerging Market or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Emerging Market vs. Calamos Opportunistic Value
Performance |
| Timeline |
| Franklin Emerging Market |
| Calamos Opportunistic |
Franklin Emerging and Calamos Opportunistic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Emerging and Calamos Opportunistic
The main advantage of trading using opposite Franklin Emerging and Calamos Opportunistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Emerging position performs unexpectedly, Calamos Opportunistic 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 Opportunistic will offset losses from the drop in Calamos Opportunistic's long position.| Franklin Emerging vs. Allianzgi Health Sciences | Franklin Emerging vs. Delaware Healthcare Fund | Franklin Emerging vs. The Hartford Healthcare | Franklin Emerging vs. Deutsche Health And |
| Calamos Opportunistic vs. Hartford Healthcare Hls | Calamos Opportunistic vs. Lord Abbett Health | Calamos Opportunistic vs. Delaware Healthcare Fund | Calamos Opportunistic vs. Allianzgi Health Sciences |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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