Correlation Between Franklin Adjustable and Calamos Short-term
Can any of the company-specific risk be diversified away by investing in both Franklin Adjustable 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 Franklin Adjustable 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 Franklin Adjustable Government and Calamos Short Term Bond, you can compare the effects of market volatilities on Franklin Adjustable 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 Franklin Adjustable with a short position of Calamos Short-term. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Adjustable and Calamos Short-term.
Diversification Opportunities for Franklin Adjustable and Calamos Short-term
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and Calamos is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Adjustable 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 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 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 Franklin Adjustable i.e., Franklin Adjustable and Calamos Short-term go up and down completely randomly.
Pair Corralation between Franklin Adjustable and Calamos Short-term
Assuming the 90 days horizon Franklin Adjustable is expected to generate 1.14 times less return on investment than Calamos Short-term. But when comparing it to its historical volatility, Franklin Adjustable Government is 1.21 times less risky than Calamos Short-term. It trades about 0.17 of its potential returns per unit of risk. Calamos Short Term Bond is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 901.00 in Calamos Short Term Bond on September 4, 2024 and sell it today you would earn a total of 53.00 from holding Calamos Short Term Bond or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
Franklin Adjustable Government vs. Calamos Short Term Bond
Performance |
| Timeline |
| Franklin Adjustable |
| Calamos Short Term |
Franklin Adjustable and Calamos Short-term Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Adjustable and Calamos Short-term
The main advantage of trading using opposite Franklin Adjustable and Calamos Short-term positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Adjustable 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.| Franklin Adjustable vs. Victory Rs Partners | Franklin Adjustable vs. Queens Road Small | Franklin Adjustable vs. Ab Discovery Value | Franklin Adjustable vs. Amg River Road |
| Calamos Short-term vs. Cref Inflation Linked Bond | Calamos Short-term vs. Ab Bond Inflation | Calamos Short-term vs. Aqr Managed Futures | Calamos Short-term vs. Oklahoma College Savings |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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