Correlation Between Visa and Calamos High
Can any of the company-specific risk be diversified away by investing in both Visa 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 Visa and Calamos High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visa Class A and Calamos High Income, you can compare the effects of market volatilities on Visa 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 Visa with a short position of Calamos High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Calamos High.
Diversification Opportunities for Visa and Calamos High
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Visa and Calamos is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A 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 Visa 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 Visa Class A 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 Visa i.e., Visa and Calamos High go up and down completely randomly.
Pair Corralation between Visa and Calamos High
Taking into account the 90-day investment horizon Visa Class A is expected to generate 6.61 times more return on investment than Calamos High. However, Visa is 6.61 times more volatile than Calamos High Income. It trades about 0.26 of its potential returns per unit of risk. Calamos High Income is currently generating about 0.1 per unit of risk. If you would invest 33,398 in Visa Class A on November 27, 2024 and sell it today you would earn a total of 1,455 from holding Visa Class A or generate 4.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. Calamos High Income
Performance |
| Timeline |
| Visa Class A |
| Calamos High Income |
Visa and Calamos High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Calamos High
The main advantage of trading using opposite Visa and Calamos High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa 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.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Calamos High vs. Barings Active Short | Calamos High vs. T Rowe Price | Calamos High vs. Ms Global Fixed | Calamos High vs. Ultra Short Fixed Income |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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