Correlation Between Short-term Government and Calamos High
Can any of the company-specific risk be diversified away by investing in both Short-term Government and Calamos High 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 Short-term Government and Calamos High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Short Term Government Fund and Calamos High Income, you can compare the effects of market volatilities on Short-term Government and Calamos High 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 Short-term Government with a short position of Calamos High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Short-term Government and Calamos High.
Diversification Opportunities for Short-term Government and Calamos High
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Short-term and Calamos is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Short Term Government Fund and Calamos High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos High Income and Short-term Government 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 Short Term Government Fund are associated (or correlated) with Calamos High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos High Income has no effect on the direction of Short-term Government i.e., Short-term Government and Calamos High go up and down completely randomly.
Pair Corralation between Short-term Government and Calamos High
Assuming the 90 days horizon Short-term Government is expected to generate 389.0 times less return on investment than Calamos High. But when comparing it to its historical volatility, Short Term Government Fund is 1.14 times less risky than Calamos High. It trades about 0.0 of its potential returns per unit of risk. Calamos High Income is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 781.00 in Calamos High Income on August 29, 2024 and sell it today you would earn a total of 7.00 from holding Calamos High Income or generate 0.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Short Term Government Fund vs. Calamos High Income
Performance |
| Timeline |
| Short Term Government |
| Calamos High Income |
Short-term Government and Calamos High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Short-term Government and Calamos High
The main advantage of trading using opposite Short-term Government and Calamos High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Short-term Government position performs unexpectedly, Calamos High 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 High will offset losses from the drop in Calamos High's long position.| Short-term Government vs. Vanguard Short Term Tax Exempt | Short-term Government vs. HUMANA INC | Short-term Government vs. Aquagold International | Short-term Government vs. Barloworld Ltd ADR |
| Calamos High vs. Prudential Government Income | Calamos High vs. Government Securities Fund | Calamos High vs. Dunham Porategovernment Bond | Calamos High vs. Short Term Government 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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