Correlation Between Government Securities and Calamos High
Can any of the company-specific risk be diversified away by investing in both Government Securities 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 Government Securities and Calamos High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Government Securities Fund and Calamos High Income, you can compare the effects of market volatilities on Government Securities 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 Government Securities with a short position of Calamos High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Government Securities and Calamos High.
Diversification Opportunities for Government Securities and Calamos High
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Government and Calamos is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Government Securities 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 Government Securities 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 Government Securities 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 Government Securities i.e., Government Securities and Calamos High go up and down completely randomly.
Pair Corralation between Government Securities and Calamos High
Assuming the 90 days horizon Government Securities is expected to generate 2.28 times less return on investment than Calamos High. In addition to that, Government Securities is 1.66 times more volatile than Calamos High Income. It trades about 0.05 of its total potential returns per unit of risk. Calamos High Income is currently generating about 0.19 per unit of volatility. If you would invest 650.00 in Calamos High Income on November 27, 2024 and sell it today you would earn a total of 135.00 from holding Calamos High Income or generate 20.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Government Securities Fund vs. Calamos High Income
Performance |
| Timeline |
| Government Securities |
| Calamos High Income |
Government Securities and Calamos High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Government Securities and Calamos High
The main advantage of trading using opposite Government Securities and Calamos High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Government Securities 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.| Government Securities vs. Dodge Cox Stock | Government Securities vs. Washington Mutual Investors | Government Securities vs. Knights Of Umbus | Government Securities vs. Tax Managed Large Cap |
| Calamos High vs. Transamerica Emerging Markets | Calamos High vs. Calvert Developed Market | Calamos High vs. Templeton Developing Markets | Calamos High vs. Aqr Sustainable Long Short |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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