Correlation Between Calamos Convertible and Pioneer Floating

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

By analyzing existing cross correlation between Calamos Convertible Opportunities and Pioneer Floating Rate, you can compare the effects of market volatilities on Calamos Convertible and Pioneer Floating 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 Pioneer Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Convertible and Pioneer Floating.

Diversification Opportunities for Calamos Convertible and Pioneer Floating

0.29

Correlation Coefficient

Calamos Convertible  Pioneer Floating

Modest diversification

The 3 months correlation between Calamos and Pioneer is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Convertible Opportunit and Pioneer Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pioneer Floating Rate 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 Opportunities are associated (or correlated) with Pioneer Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pioneer Floating Rate has no effect on the direction of Calamos Convertible i.e., Calamos Convertible and Pioneer Floating go up and down completely randomly.

Pair Corralation between Calamos Convertible and Pioneer Floating

Considering the 90-day investment horizon Calamos Convertible Opportunities is expected to under-perform the Pioneer Floating. In addition to that, Calamos Convertible is 3.05 times more volatile than Pioneer Floating Rate. It trades about -0.31 of its total potential returns per unit of risk. Pioneer Floating Rate is currently generating about -0.03 per unit of volatility. If you would invest  949.00  in Pioneer Floating Rate on December 29, 2024 and sell it today you would lose (6.00) from holding Pioneer Floating Rate or give up 0.63% of portfolio value over 90 days.

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

Calamos Convertible Opportunit  vs.  Pioneer Floating Rate

Calamos Convertible

Risk-Adjusted Performance

Very Weak

Over the last 90 days Calamos Convertible Opportunities has generated negative risk-adjusted returns adding no value to fund investors. Despite unsteady performance in the last few months, the Fund's technical indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the fund traders.

Pioneer Floating Rate

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pioneer Floating Rate has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical indicators, Pioneer Floating is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Calamos Convertible and Pioneer Floating

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

The idea behind Calamos Convertible Opportunities and Pioneer Floating Rate 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 Stocks Directory module to find actively traded stocks across global markets.