Correlation Between Fidelity Series and Calamos Short-term
Can any of the company-specific risk be diversified away by investing in both Fidelity Series and Calamos Short-term 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 Series and Calamos Short-term into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Series Government and Calamos Short Term Bond, you can compare the effects of market volatilities on Fidelity Series and Calamos Short-term 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 Series with a short position of Calamos Short-term. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Series and Calamos Short-term.
Diversification Opportunities for Fidelity Series and Calamos Short-term
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Calamos is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Series Government and Calamos Short Term Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Short Term and Fidelity Series 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 Series Government are associated (or correlated) with Calamos Short-term. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Short Term has no effect on the direction of Fidelity Series i.e., Fidelity Series and Calamos Short-term go up and down completely randomly.
Pair Corralation between Fidelity Series and Calamos Short-term
Assuming the 90 days horizon Fidelity Series Government is expected to generate 2.72 times more return on investment than Calamos Short-term. However, Fidelity Series is 2.72 times more volatile than Calamos Short Term Bond. It trades about 0.07 of its potential returns per unit of risk. Calamos Short Term Bond is currently generating about 0.17 per unit of risk. If you would invest 910.00 in Fidelity Series Government on August 31, 2024 and sell it today you would earn a total of 5.00 from holding Fidelity Series Government or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Series Government vs. Calamos Short Term Bond
Performance |
| Timeline |
| Fidelity Series Gove |
| Calamos Short Term |
Fidelity Series and Calamos Short-term Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Series and Calamos Short-term
The main advantage of trading using opposite Fidelity Series and Calamos Short-term positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Series position performs unexpectedly, Calamos Short-term 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 Short-term will offset losses from the drop in Calamos Short-term's long position.| Fidelity Series vs. Vanguard Gnma Fund | Fidelity Series vs. Us Government Securities | Fidelity Series vs. American Funds Government | Fidelity Series vs. Fidelity Sai Treasury |
| Calamos Short-term vs. Us Government Securities | Calamos Short-term vs. Fidelity Series Government | Calamos Short-term vs. Us Government Securities | Calamos Short-term vs. Franklin Adjustable Government |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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