Correlation Between Lgm Risk and Calamos Vertible
Can any of the company-specific risk be diversified away by investing in both Lgm Risk 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 Lgm Risk and Calamos Vertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lgm Risk Managed and Calamos Vertible Fund, you can compare the effects of market volatilities on Lgm Risk 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 Lgm Risk with a short position of Calamos Vertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lgm Risk and Calamos Vertible.
Diversification Opportunities for Lgm Risk and Calamos Vertible
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lgm and Calamos is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Lgm Risk Managed and Calamos Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Vertible and Lgm Risk 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 Lgm Risk Managed 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 Lgm Risk i.e., Lgm Risk and Calamos Vertible go up and down completely randomly.
Pair Corralation between Lgm Risk and Calamos Vertible
Assuming the 90 days horizon Lgm Risk Managed is expected to generate 0.66 times more return on investment than Calamos Vertible. However, Lgm Risk Managed is 1.52 times less risky than Calamos Vertible. It trades about 0.17 of its potential returns per unit of risk. Calamos Vertible Fund is currently generating about 0.11 per unit of risk. If you would invest 947.00 in Lgm Risk Managed on September 12, 2024 and sell it today you would earn a total of 204.00 from holding Lgm Risk Managed or generate 21.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lgm Risk Managed vs. Calamos Vertible Fund
Performance |
| Timeline |
| Lgm Risk Managed |
| Calamos Vertible |
Lgm Risk and Calamos Vertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lgm Risk and Calamos Vertible
The main advantage of trading using opposite Lgm Risk and Calamos Vertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lgm Risk 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.| Lgm Risk vs. Guggenheim Diversified Income | Lgm Risk vs. Wealthbuilder Conservative Allocation | Lgm Risk vs. Jpmorgan Diversified Fund | Lgm Risk vs. Federated Hermes Conservative |
| Calamos Vertible vs. Highland Longshort Healthcare | Calamos Vertible vs. Alphacentric Lifesci Healthcare | Calamos Vertible vs. Allianzgi Health Sciences | Calamos Vertible vs. Alger Health Sciences |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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