Correlation Between Vanguard Equity and Calamos Strategic
Can any of the company-specific risk be diversified away by investing in both Vanguard Equity and Calamos Strategic 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 Vanguard Equity and Calamos Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Equity Income and Calamos Strategic Total, you can compare the effects of market volatilities on Vanguard Equity and Calamos Strategic 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 Vanguard Equity with a short position of Calamos Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Equity and Calamos Strategic.
Diversification Opportunities for Vanguard Equity and Calamos Strategic
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Vanguard and Calamos is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Equity Income and Calamos Strategic Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Strategic Total and Vanguard Equity 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 Vanguard Equity Income are associated (or correlated) with Calamos Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Strategic Total has no effect on the direction of Vanguard Equity i.e., Vanguard Equity and Calamos Strategic go up and down completely randomly.
Pair Corralation between Vanguard Equity and Calamos Strategic
Assuming the 90 days horizon Vanguard Equity is expected to generate 1.61 times less return on investment than Calamos Strategic. But when comparing it to its historical volatility, Vanguard Equity Income is 1.18 times less risky than Calamos Strategic. It trades about 0.11 of its potential returns per unit of risk. Calamos Strategic Total is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,338 in Calamos Strategic Total on August 26, 2024 and sell it today you would earn a total of 463.00 from holding Calamos Strategic Total or generate 34.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Equity Income vs. Calamos Strategic Total
Performance |
| Timeline |
| Vanguard Equity Income |
| Calamos Strategic Total |
Vanguard Equity and Calamos Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Equity and Calamos Strategic
The main advantage of trading using opposite Vanguard Equity and Calamos Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Equity position performs unexpectedly, Calamos Strategic 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 Strategic will offset losses from the drop in Calamos Strategic's long position.| Vanguard Equity vs. Vanguard Dividend Growth | Vanguard Equity vs. Vanguard Wellesley Income | Vanguard Equity vs. Vanguard Wellington Fund | Vanguard Equity vs. Vanguard Growth And |
| Calamos Strategic vs. Allspring Income Opportunities | Calamos Strategic vs. Allspring Global Dividend | Calamos Strategic vs. Blackstone Gso Senior | Calamos Strategic vs. John Hancock Preferred |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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