Correlation Between Victory High and Calamos Dividend
Can any of the company-specific risk be diversified away by investing in both Victory High 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 Victory High and Calamos Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victory High Yield and Calamos Dividend Growth, you can compare the effects of market volatilities on Victory High 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 Victory High with a short position of Calamos Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory High and Calamos Dividend.
Diversification Opportunities for Victory High and Calamos Dividend
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Victory and Calamos is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Victory High Yield 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 Victory High 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 Victory High Yield 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 Victory High i.e., Victory High and Calamos Dividend go up and down completely randomly.
Pair Corralation between Victory High and Calamos Dividend
Assuming the 90 days horizon Victory High is expected to generate 1.88 times less return on investment than Calamos Dividend. But when comparing it to its historical volatility, Victory High Yield is 2.87 times less risky than Calamos Dividend. It trades about 0.14 of its potential returns per unit of risk. Calamos Dividend Growth is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,419 in Calamos Dividend Growth on November 27, 2024 and sell it today you would earn a total of 523.00 from holding Calamos Dividend Growth or generate 36.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victory High Yield vs. Calamos Dividend Growth
Performance |
| Timeline |
| Victory High Yield |
| Calamos Dividend Growth |
Victory High and Calamos Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victory High and Calamos Dividend
The main advantage of trading using opposite Victory High and Calamos Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory High 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.| Victory High vs. T Rowe Price | Victory High vs. Alpine Ultra Short | Victory High vs. Ashmore Emerging Markets | Victory High vs. Calvert Short Duration |
| Calamos Dividend vs. Strategic Advisers Income | Calamos Dividend vs. Pace High Yield | Calamos Dividend vs. Siit High Yield | Calamos Dividend vs. Dunham High Yield |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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