Correlation Between Invesco Municipal and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Invesco Municipal and Calamos Global 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 Invesco Municipal and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Municipal Opportunity and Calamos Global Dynamic, you can compare the effects of market volatilities on Invesco Municipal and Calamos Global 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 Invesco Municipal with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Municipal and Calamos Global.
Diversification Opportunities for Invesco Municipal and Calamos Global
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Invesco and Calamos is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Municipal Opportunity and Calamos Global Dynamic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Dynamic and Invesco Municipal 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 Invesco Municipal Opportunity are associated (or correlated) with Calamos Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Global Dynamic has no effect on the direction of Invesco Municipal i.e., Invesco Municipal and Calamos Global go up and down completely randomly.
Pair Corralation between Invesco Municipal and Calamos Global
Considering the 90-day investment horizon Invesco Municipal Opportunity is expected to under-perform the Calamos Global. In addition to that, Invesco Municipal is 1.52 times more volatile than Calamos Global Dynamic. It trades about -0.1 of its total potential returns per unit of risk. Calamos Global Dynamic is currently generating about 0.22 per unit of volatility. If you would invest 688.00 in Calamos Global Dynamic on September 18, 2024 and sell it today you would earn a total of 15.00 from holding Calamos Global Dynamic or generate 2.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Municipal Opportunity vs. Calamos Global Dynamic
Performance |
| Timeline |
| Invesco Municipal |
| Calamos Global Dynamic |
Invesco Municipal and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Municipal and Calamos Global
The main advantage of trading using opposite Invesco Municipal and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Municipal position performs unexpectedly, Calamos Global 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 Global will offset losses from the drop in Calamos Global's long position.| Invesco Municipal vs. Invesco Quality Municipal | Invesco Municipal vs. Invesco Advantage MIT | Invesco Municipal vs. Invesco Municipal Trust | Invesco Municipal vs. Invesco California Value |
| Calamos Global vs. Calamos Convertible And | Calamos Global vs. Calamos Strategic Total | Calamos Global vs. Calamos Dynamic Convertible | Calamos Global vs. Calamos LongShort Equity |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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