Correlation Between Allianzgi Convertible and Calamos High
Can any of the company-specific risk be diversified away by investing in both Allianzgi Convertible and Calamos High 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 High 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 High Income, you can compare the effects of market volatilities on Allianzgi Convertible and Calamos High 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 High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Convertible and Calamos High.
Diversification Opportunities for Allianzgi Convertible and Calamos High
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Allianzgi and Calamos is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Convertible Income and Calamos High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos High Income 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 High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos High Income has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and Calamos High go up and down completely randomly.
Pair Corralation between Allianzgi Convertible and Calamos High
Assuming the 90 days horizon Allianzgi Convertible Income is expected to generate 4.34 times more return on investment than Calamos High. However, Allianzgi Convertible is 4.34 times more volatile than Calamos High Income. It trades about 0.67 of its potential returns per unit of risk. Calamos High Income is currently generating about 0.18 per unit of risk. If you would invest 375.00 in Allianzgi Convertible Income on September 3, 2024 and sell it today you would earn a total of 33.00 from holding Allianzgi Convertible Income or generate 8.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Convertible Income vs. Calamos High Income
Performance |
| Timeline |
| Allianzgi Convertible |
| Calamos High Income |
Allianzgi Convertible and Calamos High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Convertible and Calamos High
The main advantage of trading using opposite Allianzgi Convertible and Calamos High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Convertible position performs unexpectedly, Calamos High 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 High will offset losses from the drop in Calamos High's long position.| Allianzgi Convertible vs. Vanguard Total Stock | Allianzgi Convertible vs. Vanguard 500 Index | Allianzgi Convertible vs. Vanguard Total Stock | Allianzgi Convertible vs. Vanguard Total Stock |
| Calamos High vs. Allianzgi Convertible Income | Calamos High vs. Rationalpier 88 Convertible | Calamos High vs. Advent Claymore Convertible | Calamos High vs. Fidelity Sai 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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