Correlation Between Calamos Convertible and Blackrock International

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Can any of the company-specific risk be diversified away by investing in both Calamos Convertible and Blackrock International 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 Blackrock International 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 Blackrock International, you can compare the effects of market volatilities on Calamos Convertible and Blackrock International 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 Blackrock International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Convertible and Blackrock International.

Diversification Opportunities for Calamos Convertible and Blackrock International

0.37
  Correlation Coefficient

Weak diversification

The 3 months correlation between Calamos and Blackrock is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Vertible Fund and Blackrock International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock International 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 Blackrock International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock International has no effect on the direction of Calamos Convertible i.e., Calamos Convertible and Blackrock International go up and down completely randomly.

Pair Corralation between Calamos Convertible and Blackrock International

Assuming the 90 days horizon Calamos Vertible Fund is expected to generate 0.63 times more return on investment than Blackrock International. However, Calamos Vertible Fund is 1.59 times less risky than Blackrock International. It trades about 0.06 of its potential returns per unit of risk. Blackrock International is currently generating about 0.02 per unit of risk. If you would invest  1,592  in Calamos Vertible Fund on October 12, 2024 and sell it today you would earn a total of  258.00  from holding Calamos Vertible Fund or generate 16.21% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Calamos Vertible Fund  vs.  Blackrock International

 Performance 
       Timeline  
Calamos Convertible 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Vertible Fund are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Calamos Convertible is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Blackrock International 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Blackrock International has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong essential indicators, Blackrock International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Calamos Convertible and Blackrock International Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Calamos Convertible and Blackrock International

The main advantage of trading using opposite Calamos Convertible and Blackrock International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Convertible position performs unexpectedly, Blackrock International 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 Blackrock International will offset losses from the drop in Blackrock International's long position.
The idea behind Calamos Vertible Fund and Blackrock International 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.
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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