Correlation Between Calamos Convertible and Guggenheim Active
Can any of the company-specific risk be diversified away by investing in both Calamos Convertible and Guggenheim Active 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 Guggenheim Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Convertible And and Guggenheim Active Allocation, you can compare the effects of market volatilities on Calamos Convertible and Guggenheim Active 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 Guggenheim Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Convertible and Guggenheim Active.
Diversification Opportunities for Calamos Convertible and Guggenheim Active
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Guggenheim is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Convertible And and Guggenheim Active Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Active 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 And are associated (or correlated) with Guggenheim Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Active has no effect on the direction of Calamos Convertible i.e., Calamos Convertible and Guggenheim Active go up and down completely randomly.
Pair Corralation between Calamos Convertible and Guggenheim Active
Considering the 90-day investment horizon Calamos Convertible And is expected to generate 0.95 times more return on investment than Guggenheim Active. However, Calamos Convertible And is 1.05 times less risky than Guggenheim Active. It trades about 0.29 of its potential returns per unit of risk. Guggenheim Active Allocation is currently generating about 0.11 per unit of risk. If you would invest 988.00 in Calamos Convertible And on May 2, 2025 and sell it today you would earn a total of 105.00 from holding Calamos Convertible And or generate 10.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Convertible And vs. Guggenheim Active Allocation
Performance |
| Timeline |
| Calamos Convertible And |
| Guggenheim Active |
Calamos Convertible and Guggenheim Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Convertible and Guggenheim Active
The main advantage of trading using opposite Calamos Convertible and Guggenheim Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Convertible position performs unexpectedly, Guggenheim Active 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 Guggenheim Active will offset losses from the drop in Guggenheim Active's long position.The idea behind Calamos Convertible And and Guggenheim Active Allocation 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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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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