Correlation Between Fidelity New and Calamos Convertible
Can any of the company-specific risk be diversified away by investing in both Fidelity New 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 Fidelity New and Calamos Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity New Markets and Calamos Vertible Fund, you can compare the effects of market volatilities on Fidelity New 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 Fidelity New with a short position of Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity New and Calamos Convertible.
Diversification Opportunities for Fidelity New and Calamos Convertible
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidelity and Calamos is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity New Markets and Calamos Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible and Fidelity New 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 Fidelity New Markets 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 Fidelity New i.e., Fidelity New and Calamos Convertible go up and down completely randomly.
Pair Corralation between Fidelity New and Calamos Convertible
Assuming the 90 days horizon Fidelity New is expected to generate 1.02 times less return on investment than Calamos Convertible. But when comparing it to its historical volatility, Fidelity New Markets is 1.4 times less risky than Calamos Convertible. It trades about 0.08 of its potential returns per unit of risk. Calamos Vertible Fund is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,592 in Calamos Vertible Fund on October 13, 2024 and sell it today you would earn a total of 258.00 from holding Calamos Vertible Fund or generate 16.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity New Markets vs. Calamos Vertible Fund
Performance |
| Timeline |
| Fidelity New Markets |
| Calamos Convertible |
Fidelity New and Calamos Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity New and Calamos Convertible
The main advantage of trading using opposite Fidelity New and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity New 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.| Fidelity New vs. Goldman Sachs Short | Fidelity New vs. Gamco Global Gold | Fidelity New vs. Invesco Gold Special | Fidelity New vs. World Precious Minerals |
| Calamos Convertible vs. Fidelity New Markets | Calamos Convertible vs. Locorr Market Trend | Calamos Convertible vs. T Rowe Price | Calamos Convertible vs. Extended Market Index |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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