Correlation Between Invesco High and Calamos LongShort
Can any of the company-specific risk be diversified away by investing in both Invesco High and Calamos LongShort 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 LongShort 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 LongShort Equity, you can compare the effects of market volatilities on Invesco High and Calamos LongShort 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 LongShort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco High and Calamos LongShort.
Diversification Opportunities for Invesco High and Calamos LongShort
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Invesco and Calamos is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Invesco High Income and Calamos LongShort Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos LongShort Equity 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 LongShort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos LongShort Equity has no effect on the direction of Invesco High i.e., Invesco High and Calamos LongShort go up and down completely randomly.
Pair Corralation between Invesco High and Calamos LongShort
If you would invest 1,524 in Calamos LongShort Equity on November 9, 2024 and sell it today you would earn a total of 36.00 from holding Calamos LongShort Equity or generate 2.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Invesco High Income vs. Calamos LongShort Equity
Performance |
| Timeline |
| Invesco High Income |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Calamos LongShort Equity |
Invesco High and Calamos LongShort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco High and Calamos LongShort
The main advantage of trading using opposite Invesco High and Calamos LongShort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco High position performs unexpectedly, Calamos LongShort 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 LongShort will offset losses from the drop in Calamos LongShort'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 LongShort vs. Calamos Convertible Opportunities | Calamos LongShort vs. Calamos Convertible And | Calamos LongShort vs. Calamos Strategic Total | Calamos LongShort vs. Calamos Dynamic Convertible |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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