Correlation Between Allianzgi Convertible and Calamos Convertible
Can any of the company-specific risk be diversified away by investing in both Allianzgi Convertible 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 Allianzgi Convertible and Calamos Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Convertible Income and Calamos Vertible Fund, you can compare the effects of market volatilities on Allianzgi Convertible 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 Allianzgi Convertible with a short position of Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Convertible and Calamos Convertible.
Diversification Opportunities for Allianzgi Convertible and Calamos Convertible
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Allianzgi and Calamos is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Convertible Income and Calamos Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible and Allianzgi Convertible 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 Allianzgi Convertible Income 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 has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and Calamos Convertible go up and down completely randomly.
Pair Corralation between Allianzgi Convertible and Calamos Convertible
Assuming the 90 days horizon Allianzgi Convertible Income is expected to generate 24.85 times more return on investment than Calamos Convertible. However, Allianzgi Convertible is 24.85 times more volatile than Calamos Vertible Fund. It trades about 0.05 of its potential returns per unit of risk. Calamos Vertible Fund is currently generating about 0.05 per unit of risk. If you would invest 321.00 in Allianzgi Convertible Income on November 27, 2024 and sell it today you would earn a total of 1,233 from holding Allianzgi Convertible Income or generate 384.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Convertible Income vs. Calamos Vertible Fund
Performance |
| Timeline |
| Allianzgi Convertible |
| Calamos Convertible |
Allianzgi Convertible and Calamos Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Convertible and Calamos Convertible
The main advantage of trading using opposite Allianzgi Convertible and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Convertible 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.| Allianzgi Convertible vs. Bbh Intermediate Municipal | Allianzgi Convertible vs. Ab Municipal Bond | Allianzgi Convertible vs. Virtus Seix Government | Allianzgi Convertible vs. Federated Government Income |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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