Correlation Between Salient Mlp and Calamos Convertible

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

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

Diversification Opportunities for Salient Mlp and Calamos Convertible

0.81

Correlation Coefficient

Salient Mlp  Calamos Convertible

Very poor diversification

The 3 months correlation between Salient and Calamos is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Salient Mlp Energy and Calamos Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible and Salient Mlp 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 Salient Mlp Energy 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 Salient Mlp i.e., Salient Mlp and Calamos Convertible go up and down completely randomly.

Pair Corralation between Salient Mlp and Calamos Convertible

Assuming the 90 days horizon Salient Mlp Energy is expected to generate 1.4 times more return on investment than Calamos Convertible. However, Salient Mlp is 1.4 times more volatile than Calamos Vertible Fund. It trades about 0.09 of its potential returns per unit of risk. Calamos Vertible Fund is currently generating about -0.22 per unit of risk. If you would invest  1,034  in Salient Mlp Energy on October 11, 2024 and sell it today you would earn a total of  21.00  from holding Salient Mlp Energy or generate 2.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	95.24%
Values	Daily Returns

Salient Mlp Energy  vs.  Calamos Vertible Fund

Salient Mlp Energy

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Salient Mlp Energy are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Salient Mlp is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Calamos Convertible

Risk-Adjusted Performance

1 of 100

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.

Pair Trading with Salient Mlp and Calamos Convertible

The main advantage of trading using opposite Salient Mlp and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salient Mlp 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 Salient Mlp Energy 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.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.