Correlation Between California Bond and Calamos Total
Can any of the company-specific risk be diversified away by investing in both California Bond and Calamos Total 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 California Bond and Calamos Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between California Bond Fund and Calamos Total Return, you can compare the effects of market volatilities on California Bond and Calamos Total 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 California Bond with a short position of Calamos Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of California Bond and Calamos Total.
Diversification Opportunities for California Bond and Calamos Total
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between California and Calamos is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding California Bond Fund and Calamos Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Total Return and California Bond 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 California Bond Fund are associated (or correlated) with Calamos Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Total Return has no effect on the direction of California Bond i.e., California Bond and Calamos Total go up and down completely randomly.
Pair Corralation between California Bond and Calamos Total
Assuming the 90 days horizon California Bond Fund is expected to generate 1.04 times more return on investment than Calamos Total. However, California Bond is 1.04 times more volatile than Calamos Total Return. It trades about -0.01 of its potential returns per unit of risk. Calamos Total Return is currently generating about -0.15 per unit of risk. If you would invest 1,049 in California Bond Fund on August 29, 2024 and sell it today you would lose (1.00) from holding California Bond Fund or give up 0.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
California Bond Fund vs. Calamos Total Return
Performance |
| Timeline |
| California Bond |
| Calamos Total Return |
California Bond and Calamos Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with California Bond and Calamos Total
The main advantage of trading using opposite California Bond and Calamos Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if California Bond position performs unexpectedly, Calamos Total 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 Total will offset losses from the drop in Calamos Total's long position.| California Bond vs. Tax Exempt Fund Of | California Bond vs. HUMANA INC | California Bond vs. Aquagold International | California Bond vs. Barloworld Ltd ADR |
| Calamos Total vs. California Bond Fund | Calamos Total vs. Blrc Sgy Mnp | Calamos Total vs. Ultra Short Fixed Income | Calamos Total vs. Rbc Ultra Short Fixed |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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