Correlation Between Versatile Bond and Calamos International
Can any of the company-specific risk be diversified away by investing in both Versatile Bond 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 Versatile Bond and Calamos International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Versatile Bond Portfolio and Calamos International Small, you can compare the effects of market volatilities on Versatile Bond 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 Versatile Bond with a short position of Calamos International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Versatile Bond and Calamos International.
Diversification Opportunities for Versatile Bond and Calamos International
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Versatile and Calamos is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Versatile Bond Portfolio and Calamos International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos International and Versatile Bond 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 Versatile Bond Portfolio 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 Versatile Bond i.e., Versatile Bond and Calamos International go up and down completely randomly.
Pair Corralation between Versatile Bond and Calamos International
Assuming the 90 days horizon Versatile Bond Portfolio is expected to generate 0.12 times more return on investment than Calamos International. However, Versatile Bond Portfolio is 8.4 times less risky than Calamos International. It trades about 0.05 of its potential returns per unit of risk. Calamos International Small is currently generating about -0.06 per unit of risk. If you would invest 6,444 in Versatile Bond Portfolio on November 27, 2024 and sell it today you would earn a total of 6.00 from holding Versatile Bond Portfolio or generate 0.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Versatile Bond Portfolio vs. Calamos International Small
Performance |
| Timeline |
| Versatile Bond Portfolio |
| Calamos International |
Versatile Bond and Calamos International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Versatile Bond and Calamos International
The main advantage of trading using opposite Versatile Bond and Calamos International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Versatile Bond 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.| Versatile Bond vs. Short Term Treasury Portfolio | Versatile Bond vs. Aggressive Growth Portfolio | Versatile Bond vs. Permanent Portfolio Class | Versatile Bond vs. Thompson Bond Fund |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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