Correlation Between Putnam Convertible and Calamos International
Can any of the company-specific risk be diversified away by investing in both Putnam Convertible and Calamos International 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 International 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 International Small, you can compare the effects of market volatilities on Putnam Convertible and Calamos International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Convertible and Calamos International.
Diversification Opportunities for Putnam Convertible and Calamos International
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Putnam and Calamos is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Convertible Incm Gwth and Calamos International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos International 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 International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos International has no effect on the direction of Putnam Convertible i.e., Putnam Convertible and Calamos International go up and down completely randomly.
Pair Corralation between Putnam Convertible and Calamos International
Assuming the 90 days horizon Putnam Convertible Incm Gwth is expected to generate 0.65 times more return on investment than Calamos International. However, Putnam Convertible Incm Gwth is 1.53 times less risky than Calamos International. It trades about 0.17 of its potential returns per unit of risk. Calamos International Small is currently generating about 0.09 per unit of risk. If you would invest 2,544 in Putnam Convertible Incm Gwth on September 15, 2024 and sell it today you would earn a total of 45.00 from holding Putnam Convertible Incm Gwth or generate 1.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Convertible Incm Gwth vs. Calamos International Small
Performance |
| Timeline |
| Putnam Convertible Incm |
| Calamos International |
Putnam Convertible and Calamos International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Convertible and Calamos International
The main advantage of trading using opposite Putnam Convertible and Calamos International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Convertible position performs unexpectedly, Calamos International 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 International will offset losses from the drop in Calamos International's long position.| Putnam Convertible vs. The National Tax Free | Putnam Convertible vs. Artisan High Income | Putnam Convertible vs. Ft 9331 Corporate | Putnam Convertible vs. Western Asset Municipal |
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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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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