Correlation Between Western Asset and Calamos LongShort
Can any of the company-specific risk be diversified away by investing in both Western Asset and Calamos LongShort 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 Western Asset and Calamos LongShort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Diversified and Calamos LongShort Equity, you can compare the effects of market volatilities on Western Asset and Calamos LongShort 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 Western Asset with a short position of Calamos LongShort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Calamos LongShort.
Diversification Opportunities for Western Asset and Calamos LongShort
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Western and Calamos is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Diversified and Calamos LongShort Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos LongShort Equity and Western Asset 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 Western Asset Diversified are associated (or correlated) with Calamos LongShort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos LongShort Equity has no effect on the direction of Western Asset i.e., Western Asset and Calamos LongShort go up and down completely randomly.
Pair Corralation between Western Asset and Calamos LongShort
Considering the 90-day investment horizon Western Asset Diversified is expected to generate 0.81 times more return on investment than Calamos LongShort. However, Western Asset Diversified is 1.23 times less risky than Calamos LongShort. It trades about 0.1 of its potential returns per unit of risk. Calamos LongShort Equity is currently generating about 0.05 per unit of risk. If you would invest 1,064 in Western Asset Diversified on August 31, 2024 and sell it today you would earn a total of 429.00 from holding Western Asset Diversified or generate 40.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset Diversified vs. Calamos LongShort Equity
Performance |
| Timeline |
| Western Asset Diversified |
| Calamos LongShort Equity |
Western Asset and Calamos LongShort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Calamos LongShort
The main advantage of trading using opposite Western Asset and Calamos LongShort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Calamos LongShort 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 LongShort will offset losses from the drop in Calamos LongShort's long position.| Western Asset vs. Neuberger Berman Next | Western Asset vs. Doubleline Yield Opportunities | Western Asset vs. PIMCO Access Income | Western Asset vs. Blackrock Innovation Growth |
| Calamos LongShort vs. Calamos Convertible Opportunities | Calamos LongShort vs. Calamos Convertible And | Calamos LongShort vs. Calamos Strategic Total | Calamos LongShort vs. Calamos Dynamic Convertible |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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