Correlation Between Putnam Convertible and Calamos Dividend
Can any of the company-specific risk be diversified away by investing in both Putnam Convertible and Calamos Dividend 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 Putnam Convertible and Calamos Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Convertible Incm Gwth and Calamos Dividend Growth, you can compare the effects of market volatilities on Putnam Convertible and Calamos Dividend 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 Putnam Convertible with a short position of Calamos Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Convertible and Calamos Dividend.
Diversification Opportunities for Putnam Convertible and Calamos Dividend
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Putnam and Calamos is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Convertible Incm Gwth and Calamos Dividend Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Dividend Growth and Putnam Convertible 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 Putnam Convertible Incm Gwth are associated (or correlated) with Calamos Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Dividend Growth has no effect on the direction of Putnam Convertible i.e., Putnam Convertible and Calamos Dividend go up and down completely randomly.
Pair Corralation between Putnam Convertible and Calamos Dividend
Assuming the 90 days horizon Putnam Convertible Incm Gwth is expected to generate 0.72 times more return on investment than Calamos Dividend. However, Putnam Convertible Incm Gwth is 1.39 times less risky than Calamos Dividend. It trades about 0.53 of its potential returns per unit of risk. Calamos Dividend Growth is currently generating about 0.37 per unit of risk. If you would invest 2,478 in Putnam Convertible Incm Gwth on September 3, 2024 and sell it today you would earn a total of 147.00 from holding Putnam Convertible Incm Gwth or generate 5.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Convertible Incm Gwth vs. Calamos Dividend Growth
Performance |
| Timeline |
| Putnam Convertible Incm |
| Calamos Dividend Growth |
Putnam Convertible and Calamos Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Convertible and Calamos Dividend
The main advantage of trading using opposite Putnam Convertible and Calamos Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Convertible position performs unexpectedly, Calamos Dividend 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 Dividend will offset losses from the drop in Calamos Dividend's long position.| Putnam Convertible vs. Franklin Vertible Securities | Putnam Convertible vs. Franklin Vertible Securities | Putnam Convertible vs. Allianzgi Vertible Fund | Putnam Convertible vs. Virtus Convertible |
| Calamos Dividend vs. Putnam Convertible Incm Gwth | Calamos Dividend vs. Gabelli Convertible And | Calamos Dividend vs. Absolute Convertible Arbitrage | Calamos Dividend vs. Advent Claymore 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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