Correlation Between International Business and Calamos Convertible
Can any of the company-specific risk be diversified away by investing in both International Business 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 International Business and Calamos Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Business Machines and Calamos Convertible And, you can compare the effects of market volatilities on International Business 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 International Business with a short position of Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and Calamos Convertible.
Diversification Opportunities for International Business and Calamos Convertible
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between International and Calamos is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Calamos Convertible And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible And and International Business 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 International Business Machines 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 And has no effect on the direction of International Business i.e., International Business and Calamos Convertible go up and down completely randomly.
Pair Corralation between International Business and Calamos Convertible
Considering the 90-day investment horizon International Business Machines is expected to generate 1.19 times more return on investment than Calamos Convertible. However, International Business is 1.19 times more volatile than Calamos Convertible And. It trades about 0.1 of its potential returns per unit of risk. Calamos Convertible And is currently generating about 0.06 per unit of risk. If you would invest 13,199 in International Business Machines on August 31, 2024 and sell it today you would earn a total of 9,542 from holding International Business Machines or generate 72.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
International Business Machine vs. Calamos Convertible And
Performance |
| Timeline |
| International Business |
| Calamos Convertible And |
International Business and Calamos Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and Calamos Convertible
The main advantage of trading using opposite International Business and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business 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.| International Business vs. RLJ Lodging Trust | International Business vs. Aquagold International | International Business vs. Stepstone Group | International Business vs. Morningstar Unconstrained Allocation |
| Calamos Convertible vs. Calamos Global Dynamic | Calamos Convertible vs. Calamos Strategic Total | Calamos Convertible vs. Calamos Dynamic Convertible | Calamos Convertible 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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