Correlation Between Franklin Adjustable and Calamos High
Can any of the company-specific risk be diversified away by investing in both Franklin Adjustable and Calamos High 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 Adjustable and Calamos High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Adjustable Government and Calamos High Income, you can compare the effects of market volatilities on Franklin Adjustable and Calamos High 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 Adjustable with a short position of Calamos High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Adjustable and Calamos High.
Diversification Opportunities for Franklin Adjustable and Calamos High
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Calamos is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Adjustable Government and Calamos High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos High Income and Franklin Adjustable 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 Adjustable Government are associated (or correlated) with Calamos High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos High Income has no effect on the direction of Franklin Adjustable i.e., Franklin Adjustable and Calamos High go up and down completely randomly.
Pair Corralation between Franklin Adjustable and Calamos High
Assuming the 90 days horizon Franklin Adjustable is expected to generate 3.21 times less return on investment than Calamos High. But when comparing it to its historical volatility, Franklin Adjustable Government is 1.08 times less risky than Calamos High. It trades about 0.1 of its potential returns per unit of risk. Calamos High Income is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 781.00 in Calamos High Income on August 29, 2024 and sell it today you would earn a total of 7.00 from holding Calamos High Income or generate 0.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Franklin Adjustable Government vs. Calamos High Income
Performance |
| Timeline |
| Franklin Adjustable |
| Calamos High Income |
Franklin Adjustable and Calamos High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Adjustable and Calamos High
The main advantage of trading using opposite Franklin Adjustable and Calamos High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Adjustable position performs unexpectedly, Calamos High 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 High will offset losses from the drop in Calamos High's long position.| Franklin Adjustable vs. Vanguard Short Term Tax Exempt | Franklin Adjustable vs. HUMANA INC | Franklin Adjustable vs. Aquagold International | Franklin Adjustable vs. Barloworld Ltd ADR |
| Calamos High vs. Prudential Government Income | Calamos High vs. Government Securities Fund | Calamos High vs. Dunham Porategovernment Bond | Calamos High vs. Short Term Government Fund |
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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