Correlation Between Virtus Real and Calamos Convertible
Can any of the company-specific risk be diversified away by investing in both Virtus Real 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 Virtus Real and Calamos Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Real Estate and Calamos Vertible Fund, you can compare the effects of market volatilities on Virtus Real 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 Virtus Real with a short position of Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Real and Calamos Convertible.
Diversification Opportunities for Virtus Real and Calamos Convertible
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Virtus and Calamos is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Real Estate and Calamos Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible and Virtus Real 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 Virtus Real Estate 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 Virtus Real i.e., Virtus Real and Calamos Convertible go up and down completely randomly.
Pair Corralation between Virtus Real and Calamos Convertible
Assuming the 90 days horizon Virtus Real Estate is expected to generate 1.58 times more return on investment than Calamos Convertible. However, Virtus Real is 1.58 times more volatile than Calamos Vertible Fund. It trades about 0.2 of its potential returns per unit of risk. Calamos Vertible Fund is currently generating about 0.18 per unit of risk. If you would invest 1,773 in Virtus Real Estate on September 3, 2024 and sell it today you would earn a total of 419.00 from holding Virtus Real Estate or generate 23.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus Real Estate vs. Calamos Vertible Fund
Performance |
| Timeline |
| Virtus Real Estate |
| Calamos Convertible |
Virtus Real and Calamos Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Real and Calamos Convertible
The main advantage of trading using opposite Virtus Real and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Real 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.| Virtus Real vs. Us Government Securities | Virtus Real vs. John Hancock Government | Virtus Real vs. Dunham Porategovernment Bond | Virtus Real vs. Fidelity Series Government |
| Calamos Convertible vs. Sprott Gold Equity | Calamos Convertible vs. Oppenheimer Gold Special | Calamos Convertible vs. Goldman Sachs Short | Calamos Convertible vs. Gold And Precious |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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