Correlation Between Guidemark(r) Large and Calamos Vertible
Can any of the company-specific risk be diversified away by investing in both Guidemark(r) Large and Calamos Vertible 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 Guidemark(r) Large and Calamos Vertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guidemark Large Cap and Calamos Vertible Fund, you can compare the effects of market volatilities on Guidemark(r) Large and Calamos Vertible 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 Guidemark(r) Large with a short position of Calamos Vertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidemark(r) Large and Calamos Vertible.
Diversification Opportunities for Guidemark(r) Large and Calamos Vertible
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guidemark(r) and Calamos is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Guidemark Large Cap and Calamos Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Vertible and Guidemark(r) Large 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 Guidemark Large Cap are associated (or correlated) with Calamos Vertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Vertible has no effect on the direction of Guidemark(r) Large i.e., Guidemark(r) Large and Calamos Vertible go up and down completely randomly.
Pair Corralation between Guidemark(r) Large and Calamos Vertible
Assuming the 90 days horizon Guidemark(r) Large is expected to generate 1.16 times less return on investment than Calamos Vertible. In addition to that, Guidemark(r) Large is 1.27 times more volatile than Calamos Vertible Fund. It trades about 0.12 of its total potential returns per unit of risk. Calamos Vertible Fund is currently generating about 0.17 per unit of volatility. If you would invest 1,861 in Calamos Vertible Fund on November 4, 2024 and sell it today you would earn a total of 41.00 from holding Calamos Vertible Fund or generate 2.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guidemark Large Cap vs. Calamos Vertible Fund
Performance |
| Timeline |
| Guidemark Large Cap |
| Calamos Vertible |
Guidemark(r) Large and Calamos Vertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guidemark(r) Large and Calamos Vertible
The main advantage of trading using opposite Guidemark(r) Large and Calamos Vertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidemark(r) Large position performs unexpectedly, Calamos Vertible 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 Vertible will offset losses from the drop in Calamos Vertible's long position.| Guidemark(r) Large vs. Strategic Advisers Income | Guidemark(r) Large vs. Msift High Yield | Guidemark(r) Large vs. Lord Abbett Short | Guidemark(r) Large vs. Buffalo High Yield |
| Calamos Vertible vs. Tax Managed Mid Small | Calamos Vertible vs. Praxis Small Cap | Calamos Vertible vs. Touchstone Small Cap | Calamos Vertible vs. Ab Small Cap |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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