Correlation Between Vanguard Total and Calamos Convertible
Can any of the company-specific risk be diversified away by investing in both Vanguard Total and Calamos Convertible 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 Total and Calamos Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Total Stock and Calamos Convertible And, you can compare the effects of market volatilities on Vanguard Total and Calamos Convertible 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 Total with a short position of Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Total and Calamos Convertible.
Diversification Opportunities for Vanguard Total and Calamos Convertible
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Vanguard and Calamos is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Total Stock and Calamos Convertible And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible And and Vanguard Total 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 Total Stock are associated (or correlated) with Calamos Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Convertible And has no effect on the direction of Vanguard Total i.e., Vanguard Total and Calamos Convertible go up and down completely randomly.
Pair Corralation between Vanguard Total and Calamos Convertible
Assuming the 90 days horizon Vanguard Total Stock is expected to generate 0.79 times more return on investment than Calamos Convertible. However, Vanguard Total Stock is 1.27 times less risky than Calamos Convertible. It trades about 0.12 of its potential returns per unit of risk. Calamos Convertible And is currently generating about 0.06 per unit of risk. If you would invest 9,224 in Vanguard Total Stock on August 31, 2024 and sell it today you would earn a total of 5,285 from holding Vanguard Total Stock or generate 57.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Total Stock vs. Calamos Convertible And
Performance |
| Timeline |
| Vanguard Total Stock |
| Calamos Convertible And |
Vanguard Total and Calamos Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Total and Calamos Convertible
The main advantage of trading using opposite Vanguard Total and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Total position performs unexpectedly, Calamos Convertible 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 Convertible will offset losses from the drop in Calamos Convertible's long position.| Vanguard Total vs. Rbc Global Equity | Vanguard Total vs. Ultra Short Fixed Income | Vanguard Total vs. Ms Global Fixed | Vanguard Total vs. Cutler Equity |
| Calamos Convertible vs. Calamos Global Dynamic | Calamos Convertible vs. Calamos Strategic Total | Calamos Convertible vs. Calamos Dynamic Convertible | Calamos Convertible 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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