Correlation Between Federated Hermes and Calamos Strategic
Can any of the company-specific risk be diversified away by investing in both Federated Hermes and Calamos Strategic 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 Federated Hermes and Calamos Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Hermes Conservative and Calamos Strategic Total, you can compare the effects of market volatilities on Federated Hermes and Calamos Strategic 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 Federated Hermes with a short position of Calamos Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Hermes and Calamos Strategic.
Diversification Opportunities for Federated Hermes and Calamos Strategic
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Federated and Calamos is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Federated Hermes Conservative and Calamos Strategic Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Strategic Total and Federated Hermes 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 Federated Hermes Conservative are associated (or correlated) with Calamos Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Strategic Total has no effect on the direction of Federated Hermes i.e., Federated Hermes and Calamos Strategic go up and down completely randomly.
Pair Corralation between Federated Hermes and Calamos Strategic
If you would invest 1,717 in Calamos Strategic Total on September 2, 2024 and sell it today you would earn a total of 97.00 from holding Calamos Strategic Total or generate 5.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Hermes Conservative vs. Calamos Strategic Total
Performance |
| Timeline |
| Federated Hermes Con |
| Calamos Strategic Total |
Federated Hermes and Calamos Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Hermes and Calamos Strategic
The main advantage of trading using opposite Federated Hermes and Calamos Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Hermes position performs unexpectedly, Calamos Strategic 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 Strategic will offset losses from the drop in Calamos Strategic's long position.| Federated Hermes vs. Investec Emerging Markets | Federated Hermes vs. Franklin Emerging Market | Federated Hermes vs. Eagle Mlp Strategy | Federated Hermes vs. Ashmore Emerging Markets |
| Calamos Strategic vs. Calamos Convertible Opportunities | Calamos Strategic vs. Calamos Dynamic Convertible | Calamos Strategic vs. Calamos Global Dynamic | Calamos Strategic 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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