Correlation Between Power Floating and Calamos Strategic
Can any of the company-specific risk be diversified away by investing in both Power Floating 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 Power Floating and Calamos Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Power Floating Rate and Calamos Strategic Total, you can compare the effects of market volatilities on Power Floating 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 Power Floating with a short position of Calamos Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Power Floating and Calamos Strategic.
Diversification Opportunities for Power Floating and Calamos Strategic
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Power and Calamos is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Power Floating Rate 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 Power Floating 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 Power Floating Rate 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 Power Floating i.e., Power Floating and Calamos Strategic go up and down completely randomly.
Pair Corralation between Power Floating and Calamos Strategic
Assuming the 90 days horizon Power Floating is expected to generate 10.64 times less return on investment than Calamos Strategic. But when comparing it to its historical volatility, Power Floating Rate is 14.12 times less risky than Calamos Strategic. It trades about 0.44 of its potential returns per unit of risk. Calamos Strategic Total is currently generating about 0.33 of returns per unit of risk over similar time horizon. 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Power Floating Rate vs. Calamos Strategic Total
Performance |
| Timeline |
| Power Floating Rate |
| Calamos Strategic Total |
Power Floating and Calamos Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Power Floating and Calamos Strategic
The main advantage of trading using opposite Power Floating and Calamos Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Power Floating 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.| Power Floating vs. Power Global Tactical | Power Floating vs. Power Floating Rate | Power Floating vs. Janus Balanced Fund | Power Floating vs. Pin Oak Equity |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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