Correlation Between NYSE Composite and Calamos Convertible
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Calamos Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Calamos Vertible Fund, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Calamos Convertible.
Diversification Opportunities for NYSE Composite and Calamos Convertible
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NYSE and Calamos is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Calamos Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible and NYSE Composite 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 NYSE Composite 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 has no effect on the direction of NYSE Composite i.e., NYSE Composite and Calamos Convertible go up and down completely randomly.
Pair Corralation between NYSE Composite and Calamos Convertible
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.35 times more return on investment than Calamos Convertible. However, NYSE Composite is 1.35 times more volatile than Calamos Vertible Fund. It trades about 0.08 of its potential returns per unit of risk. Calamos Vertible Fund is currently generating about 0.08 per unit of risk. If you would invest 1,539,994 in NYSE Composite on August 29, 2024 and sell it today you would earn a total of 481,951 from holding NYSE Composite or generate 31.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Calamos Vertible Fund
Performance |
| Timeline |
NYSE Composite and Calamos Convertible Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Calamos Vertible Fund
Pair trading matchups for Calamos Convertible
Pair Trading with NYSE Composite and Calamos Convertible
The main advantage of trading using opposite NYSE Composite and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Vita Coco | NYSE Composite vs. Franklin Wireless Corp | NYSE Composite vs. Ambev SA ADR | NYSE Composite vs. Toro Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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