Correlation Between Invesco High and Calamos Convertible
Can any of the company-specific risk be diversified away by investing in both Invesco High 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 Invesco High and Calamos Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco High Income and Calamos Convertible And, you can compare the effects of market volatilities on Invesco High 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 Invesco High with a short position of Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco High and Calamos Convertible.
Diversification Opportunities for Invesco High and Calamos Convertible
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Invesco and Calamos is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Invesco High Income 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 Invesco High 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 Invesco High Income 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 Invesco High i.e., Invesco High and Calamos Convertible go up and down completely randomly.
Pair Corralation between Invesco High and Calamos Convertible
Given the investment horizon of 90 days Invesco High is expected to generate 4.33 times less return on investment than Calamos Convertible. But when comparing it to its historical volatility, Invesco High Income is 8.26 times less risky than Calamos Convertible. It trades about 0.29 of its potential returns per unit of risk. Calamos Convertible And is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,199 in Calamos Convertible And on August 28, 2024 and sell it today you would earn a total of 34.00 from holding Calamos Convertible And or generate 2.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco High Income vs. Calamos Convertible And
Performance |
| Timeline |
| Invesco High Income |
| Calamos Convertible And |
Invesco High and Calamos Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco High and Calamos Convertible
The main advantage of trading using opposite Invesco High and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco High 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.| Invesco High vs. MFS Investment Grade | Invesco High vs. Eaton Vance National | Invesco High vs. Nuveen California Select | Invesco High vs. Federated Premier Municipal |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |