Correlation Between Sa Real and Calamos Convertible

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Can any of the company-specific risk be diversified away by investing in both Sa Real and Calamos Convertible 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 Sa Real and Calamos Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sa Real Estate and Calamos Vertible Fund, you can compare the effects of market volatilities on Sa Real and Calamos Convertible 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 Sa Real with a short position of Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sa Real and Calamos Convertible.

Diversification Opportunities for Sa Real and Calamos Convertible

SAREXCalamosDiversified AwaySAREXCalamosDiversified Away100%
0.21
  Correlation Coefficient

Modest diversification

The 3 months correlation between SAREX and Calamos is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Sa Real Estate and Calamos Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible and Sa Real 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 Sa Real Estate are associated (or correlated) with Calamos Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Convertible has no effect on the direction of Sa Real i.e., Sa Real and Calamos Convertible go up and down completely randomly.

Pair Corralation between Sa Real and Calamos Convertible

Assuming the 90 days horizon Sa Real Estate is expected to under-perform the Calamos Convertible. In addition to that, Sa Real is 1.66 times more volatile than Calamos Vertible Fund. It trades about -0.09 of its total potential returns per unit of risk. Calamos Vertible Fund is currently generating about 0.08 per unit of volatility. If you would invest  1,831  in Calamos Vertible Fund on October 21, 2024 and sell it today you would earn a total of  59.00  from holding Calamos Vertible Fund or generate 3.22% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Sa Real Estate  vs.  Calamos Vertible Fund

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -10-505
JavaScript chart by amCharts 3.21.15SAREX CICVX
       Timeline  
Sa Real Estate 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Sa Real Estate has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan10.81111.211.411.611.81212.212.4
Calamos Convertible 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Vertible Fund are ranked lower than 6 (%) 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.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan18.218.418.618.81919.219.4

Sa Real and Calamos Convertible Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-1.88-1.42-0.96-0.5-0.06250.320.781.241.7 0.20.40.60.8
JavaScript chart by amCharts 3.21.15SAREX CICVX
       Returns  

Pair Trading with Sa Real and Calamos Convertible

The main advantage of trading using opposite Sa Real and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sa Real position performs unexpectedly, Calamos Convertible 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 Convertible will offset losses from the drop in Calamos Convertible's long position.
The idea behind Sa Real Estate and Calamos Vertible Fund 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

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