Correlation Between Forum Real and Calamos Convertible
Can any of the company-specific risk be diversified away by investing in both Forum Real and Calamos Convertible 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 Forum Real and Calamos Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Forum Real Estate and Calamos Vertible Fund, you can compare the effects of market volatilities on Forum Real and Calamos Convertible 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 Forum Real with a short position of Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Forum Real and Calamos Convertible.
Diversification Opportunities for Forum Real and Calamos Convertible
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Forum and Calamos is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Forum Real Estate and Calamos Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible and Forum Real 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 Forum Real Estate are associated (or correlated) with Calamos Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Convertible has no effect on the direction of Forum Real i.e., Forum Real and Calamos Convertible go up and down completely randomly.
Pair Corralation between Forum Real and Calamos Convertible
Assuming the 90 days horizon Forum Real is expected to generate 1.04 times less return on investment than Calamos Convertible. But when comparing it to its historical volatility, Forum Real Estate is 4.24 times less risky than Calamos Convertible. It trades about 0.34 of its potential returns per unit of risk. Calamos Vertible Fund is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,561 in Calamos Vertible Fund on September 1, 2024 and sell it today you would earn a total of 382.00 from holding Calamos Vertible Fund or generate 24.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Forum Real Estate vs. Calamos Vertible Fund
Performance |
| Timeline |
| Forum Real Estate |
| Calamos Convertible |
Forum Real and Calamos Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Forum Real and Calamos Convertible
The main advantage of trading using opposite Forum Real and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Forum Real position performs unexpectedly, Calamos Convertible 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 Convertible will offset losses from the drop in Calamos Convertible's long position.| Forum Real vs. The Hartford Healthcare | Forum Real vs. Invesco Global Health | Forum Real vs. Allianzgi Health Sciences | Forum Real vs. Fidelity Advisor Health |
| Calamos Convertible vs. Forum Real Estate | Calamos Convertible vs. Tiaa Cref Real Estate | Calamos Convertible vs. Commonwealth Real Estate | Calamos Convertible vs. Virtus Real Estate |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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