Correlation Between Calamos Convertible and Franklin Pennsylvania
Can any of the company-specific risk be diversified away by investing in both Calamos Convertible and Franklin Pennsylvania 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 Franklin Pennsylvania into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Vertible Fund and Franklin Pennsylvania Tax Free, you can compare the effects of market volatilities on Calamos Convertible and Franklin Pennsylvania 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 Franklin Pennsylvania. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Convertible and Franklin Pennsylvania.
Diversification Opportunities for Calamos Convertible and Franklin Pennsylvania
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Franklin is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Vertible Fund and Franklin Pennsylvania Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Pennsylvania 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 Vertible Fund are associated (or correlated) with Franklin Pennsylvania. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Pennsylvania has no effect on the direction of Calamos Convertible i.e., Calamos Convertible and Franklin Pennsylvania go up and down completely randomly.
Pair Corralation between Calamos Convertible and Franklin Pennsylvania
Assuming the 90 days horizon Calamos Vertible Fund is expected to under-perform the Franklin Pennsylvania. In addition to that, Calamos Convertible is 2.71 times more volatile than Franklin Pennsylvania Tax Free. It trades about -0.22 of its total potential returns per unit of risk. Franklin Pennsylvania Tax Free is currently generating about -0.39 per unit of volatility. If you would invest 899.00 in Franklin Pennsylvania Tax Free on October 11, 2024 and sell it today you would lose (21.00) from holding Franklin Pennsylvania Tax Free or give up 2.34% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Calamos Vertible Fund vs. Franklin Pennsylvania Tax Free
Performance |
Timeline |
Calamos Convertible |
Franklin Pennsylvania |
Calamos Convertible and Franklin Pennsylvania Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Calamos Convertible and Franklin Pennsylvania
The main advantage of trading using opposite Calamos Convertible and Franklin Pennsylvania positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Convertible position performs unexpectedly, Franklin Pennsylvania 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 Franklin Pennsylvania will offset losses from the drop in Franklin Pennsylvania's long position.Calamos Convertible vs. Salient Mlp Energy | Calamos Convertible vs. Firsthand Alternative Energy | Calamos Convertible vs. World Energy Fund | Calamos Convertible vs. Clearbridge Energy Mlp |
Franklin Pennsylvania vs. Calamos Vertible Fund | Franklin Pennsylvania vs. Mainstay Vertible Fund | Franklin Pennsylvania vs. Virtus Convertible | Franklin Pennsylvania vs. Putnam Vertible Securities |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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