Correlation Between Prudential Government and Calamos High
Can any of the company-specific risk be diversified away by investing in both Prudential Government and Calamos High 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 Prudential Government and Calamos High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prudential Government Income and Calamos High Income, you can compare the effects of market volatilities on Prudential Government and Calamos High 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 Prudential Government with a short position of Calamos High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential Government and Calamos High.
Diversification Opportunities for Prudential Government and Calamos High
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Prudential and Calamos is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Government Income and Calamos High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos High Income and Prudential Government 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 Prudential Government Income are associated (or correlated) with Calamos High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos High Income has no effect on the direction of Prudential Government i.e., Prudential Government and Calamos High go up and down completely randomly.
Pair Corralation between Prudential Government and Calamos High
Assuming the 90 days horizon Prudential Government Income is expected to generate 1.1 times more return on investment than Calamos High. However, Prudential Government is 1.1 times more volatile than Calamos High Income. It trades about -0.05 of its potential returns per unit of risk. Calamos High Income is currently generating about -0.2 per unit of risk. If you would invest 787.00 in Prudential Government Income on January 18, 2025 and sell it today you would lose (4.00) from holding Prudential Government Income or give up 0.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prudential Government Income vs. Calamos High Income
Performance |
| Timeline |
| Prudential Government |
| Calamos High Income |
Prudential Government and Calamos High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prudential Government and Calamos High
The main advantage of trading using opposite Prudential Government and Calamos High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prudential Government position performs unexpectedly, Calamos High 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 High will offset losses from the drop in Calamos High's long position.| Prudential Government vs. Old Westbury Fixed | Prudential Government vs. Consumer Staples Portfolio | Prudential Government vs. Gmo Global Equity | Prudential Government vs. Scharf Fund Retail |
| Calamos High vs. Ft 9331 Corporate | Calamos High vs. Intermediate Term Bond Fund | Calamos High vs. Ishares Aggregate Bond | Calamos High vs. Calvert Bond Portfolio |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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