Correlation Between Walmart and Calamos Convertible
Can any of the company-specific risk be diversified away by investing in both Walmart 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 Walmart and Calamos Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Calamos Convertible And, you can compare the effects of market volatilities on Walmart 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 Walmart with a short position of Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Calamos Convertible.
Diversification Opportunities for Walmart and Calamos Convertible
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Walmart and Calamos is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Walmart 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 Walmart 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 Walmart 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 Walmart i.e., Walmart and Calamos Convertible go up and down completely randomly.
Pair Corralation between Walmart and Calamos Convertible
Considering the 90-day investment horizon Walmart is expected to generate 1.0 times more return on investment than Calamos Convertible. However, Walmart is 1.0 times less risky than Calamos Convertible. It trades about 0.14 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 4,713 in Walmart on August 31, 2024 and sell it today you would earn a total of 4,475 from holding Walmart or generate 94.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart vs. Calamos Convertible And
Performance |
| Timeline |
| Walmart |
| Calamos Convertible And |
Walmart and Calamos Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Calamos Convertible
The main advantage of trading using opposite Walmart and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart 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.| Walmart vs. Dollar General | Walmart vs. Aquagold International | Walmart vs. Thrivent High Yield | Walmart vs. Morningstar Unconstrained Allocation |
| 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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