Correlation Between Ultra-short Fixed and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Ultra-short Fixed and Calamos Global 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 Ultra-short Fixed and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ultra Short Fixed Income and Calamos Global Equity, you can compare the effects of market volatilities on Ultra-short Fixed and Calamos Global 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 Ultra-short Fixed with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultra-short Fixed and Calamos Global.
Diversification Opportunities for Ultra-short Fixed and Calamos Global
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ultra-short and Calamos is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Ultra Short Fixed Income and Calamos Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Equity and Ultra-short Fixed 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 Ultra Short Fixed Income are associated (or correlated) with Calamos Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Global Equity has no effect on the direction of Ultra-short Fixed i.e., Ultra-short Fixed and Calamos Global go up and down completely randomly.
Pair Corralation between Ultra-short Fixed and Calamos Global
Assuming the 90 days horizon Ultra Short Fixed Income is not expected to generate positive returns. However, Ultra Short Fixed Income is 16.68 times less risky than Calamos Global. It waists most of its returns potential to compensate for thr risk taken. Calamos Global is generating about 0.31 per unit of risk. If you would invest 1,859 in Calamos Global Equity on September 1, 2024 and sell it today you would earn a total of 89.00 from holding Calamos Global Equity or generate 4.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ultra Short Fixed Income vs. Calamos Global Equity
Performance |
| Timeline |
| Ultra Short Fixed |
| Calamos Global Equity |
Ultra-short Fixed and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ultra-short Fixed and Calamos Global
The main advantage of trading using opposite Ultra-short Fixed and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultra-short Fixed position performs unexpectedly, Calamos Global 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 Global will offset losses from the drop in Calamos Global's long position.| Ultra-short Fixed vs. Nuveen Minnesota Municipal | Ultra-short Fixed vs. Federated Ohio Municipal | Ultra-short Fixed vs. T Rowe Price | Ultra-short Fixed vs. The National Tax Free |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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