Correlation Between Munivest Fund and Calamos Convertible

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

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

Diversification Opportunities for Munivest Fund and Calamos Convertible

-0.26

Correlation Coefficient

Munivest Fund  Calamos Convertible

Very good diversification

The 3 months correlation between Munivest and Calamos is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Munivest Fund and Calamos Convertible And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible And and Munivest Fund 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 Munivest Fund 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 And has no effect on the direction of Munivest Fund i.e., Munivest Fund and Calamos Convertible go up and down completely randomly.

Pair Corralation between Munivest Fund and Calamos Convertible

Considering the 90-day investment horizon Munivest Fund is expected to under-perform the Calamos Convertible. But the fund apears to be less risky and, when comparing its historical volatility, Munivest Fund is 1.25 times less risky than Calamos Convertible. The fund trades about -0.1 of its potential returns per unit of risk. The Calamos Convertible And is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  1,166  in Calamos Convertible And on September 18, 2024 and sell it today you would earn a total of  64.00  from holding Calamos Convertible And or generate 5.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Munivest Fund  vs.  Calamos Convertible And

Munivest Fund

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Munivest Fund has generated negative risk-adjusted returns adding no value to fund investors. Despite nearly stable basic indicators, Munivest Fund is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Calamos Convertible And

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Convertible And are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical 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 Munivest Fund and Calamos Convertible

The main advantage of trading using opposite Munivest Fund and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Munivest Fund 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 Munivest Fund and Calamos Convertible And 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.