Correlation Between Calamos Convertible and Calamos Strategic

Can any of the company-specific risk be diversified away by investing in both Calamos Convertible and Calamos Strategic 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 Calamos Convertible and Calamos Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Calamos Convertible And and Calamos Strategic Total, you can compare the effects of market volatilities on Calamos Convertible and Calamos Strategic 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 Calamos Convertible with a short position of Calamos Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Convertible and Calamos Strategic.

Diversification Opportunities for Calamos Convertible and Calamos Strategic

0.05

Correlation Coefficient

Calamos Convertible  Calamos Strategic

Significant diversification

The 3 months correlation between Calamos and Calamos is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Convertible And and Calamos Strategic Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Strategic Total and Calamos 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 Calamos Convertible And are associated (or correlated) with Calamos Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Strategic Total has no effect on the direction of Calamos Convertible i.e., Calamos Convertible and Calamos Strategic go up and down completely randomly.

Pair Corralation between Calamos Convertible and Calamos Strategic

Considering the 90-day investment horizon Calamos Convertible And is expected to under-perform the Calamos Strategic. In addition to that, Calamos Convertible is 1.05 times more volatile than Calamos Strategic Total. It trades about -0.07 of its total potential returns per unit of risk. Calamos Strategic Total is currently generating about 0.07 per unit of volatility. If you would invest  1,571  in Calamos Strategic Total on March 4, 2024 and sell it today you would earn a total of  52.00  from holding Calamos Strategic Total or generate 3.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Calamos Convertible And  vs.  Calamos Strategic Total

Calamos Convertible And

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Calamos Convertible And has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical indicators, Calamos Convertible is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Calamos Strategic Total

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Strategic Total are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. Even with relatively invariable basic indicators, Calamos Strategic is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Calamos Convertible and Calamos Strategic

The main advantage of trading using opposite Calamos Convertible and Calamos Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Convertible position performs unexpectedly, Calamos Strategic 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 Strategic will offset losses from the drop in Calamos Strategic's long position.

The idea behind Calamos Convertible And and Calamos Strategic Total pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Channel module to use Commodity Channel Index to analyze current equity momentum.