Correlation Between First Eagle and Calamos Convertible
Can any of the company-specific risk be diversified away by investing in both First Eagle 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 First Eagle and Calamos Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Eagle Global and Calamos Vertible Fund, you can compare the effects of market volatilities on First Eagle 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 First Eagle with a short position of Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Calamos Convertible.
Diversification Opportunities for First Eagle and Calamos Convertible
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between First and Calamos is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Global and Calamos Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible and First Eagle 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 First Eagle Global 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 First Eagle i.e., First Eagle and Calamos Convertible go up and down completely randomly.
Pair Corralation between First Eagle and Calamos Convertible
Assuming the 90 days horizon First Eagle Global is expected to generate 1.08 times more return on investment than Calamos Convertible. However, First Eagle is 1.08 times more volatile than Calamos Vertible Fund. It trades about 0.12 of its potential returns per unit of risk. Calamos Vertible Fund is currently generating about 0.1 per unit of risk. If you would invest 6,309 in First Eagle Global on August 25, 2024 and sell it today you would earn a total of 1,040 from holding First Eagle Global or generate 16.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Global vs. Calamos Vertible Fund
Performance |
| Timeline |
| First Eagle Global |
| Calamos Convertible |
First Eagle and Calamos Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Calamos Convertible
The main advantage of trading using opposite First Eagle and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle 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.| First Eagle vs. First Eagle Overseas | First Eagle vs. Ivy Asset Strategy | First Eagle vs. Blackrock Gbl Alloc | First Eagle vs. Templeton Global Bond |
| Calamos Convertible vs. Calvert High Yield | Calamos Convertible vs. Alliancebernstein Global High | Calamos Convertible vs. T Rowe Price | Calamos Convertible vs. Needham Aggressive Growth |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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