Correlation Between Pioneer High and Calamos Convertible
Can any of the company-specific risk be diversified away by investing in both Pioneer High 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 Pioneer High and Calamos Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pioneer High Yield and Calamos Vertible Fund, you can compare the effects of market volatilities on Pioneer High 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 Pioneer High with a short position of Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pioneer High and Calamos Convertible.
Diversification Opportunities for Pioneer High and Calamos Convertible
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PIONEER and Calamos is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Pioneer High Yield and Calamos Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible and Pioneer 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 Pioneer High Yield 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 Pioneer High i.e., Pioneer High and Calamos Convertible go up and down completely randomly.
Pair Corralation between Pioneer High and Calamos Convertible
Assuming the 90 days horizon Pioneer High is expected to generate 2.38 times less return on investment than Calamos Convertible. But when comparing it to its historical volatility, Pioneer High Yield is 3.03 times less risky than Calamos Convertible. It trades about 0.23 of its potential returns per unit of risk. Calamos Vertible Fund is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,718 in Calamos Vertible Fund on September 5, 2024 and sell it today you would earn a total of 225.00 from holding Calamos Vertible Fund or generate 13.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pioneer High Yield vs. Calamos Vertible Fund
Performance |
| Timeline |
| Pioneer High Yield |
| Calamos Convertible |
Pioneer High and Calamos Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pioneer High and Calamos Convertible
The main advantage of trading using opposite Pioneer High and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pioneer High 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.| Pioneer High vs. Pioneer Fundamental Growth | Pioneer High vs. Pioneer Global Equity | Pioneer High vs. Pioneer Disciplined Value | Pioneer High vs. Pioneer Disciplined Value |
| Calamos Convertible vs. Old Westbury Large | Calamos Convertible vs. Volumetric Fund Volumetric | Calamos Convertible vs. Touchstone Large Cap | Calamos Convertible vs. Qs Large Cap |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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