Correlation Between Allianzgi Convertible and Calamos Convertible

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

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

Diversification Opportunities for Allianzgi Convertible and Calamos Convertible

0.99

Correlation Coefficient

Allianzgi Convertible  Calamos Convertible

No risk reduction

The 3 months correlation between Allianzgi and Calamos is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Convertible Income 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 Allianzgi 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 Allianzgi Convertible Income 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 Allianzgi Convertible i.e., Allianzgi Convertible and Calamos Convertible go up and down completely randomly.

Pair Corralation between Allianzgi Convertible and Calamos Convertible

Considering the 90-day investment horizon Allianzgi Convertible Income is expected to generate 1.17 times more return on investment than Calamos Convertible. However, Allianzgi Convertible is 1.17 times more volatile than Calamos Convertible And. It trades about 0.29 of its potential returns per unit of risk. Calamos Convertible And is currently generating about 0.24 per unit of risk. If you would invest  1,265  in Allianzgi Convertible Income on May 6, 2025 and sell it today you would earn a total of  172.00  from holding Allianzgi Convertible Income or generate 13.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Allianzgi Convertible Income  vs.  Calamos Convertible And

Allianzgi Convertible

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Allianzgi Convertible Income are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Allianzgi Convertible showed solid returns over the last few months and may actually be approaching a breakup point.

Calamos Convertible And

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Convertible And are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly inconsistent technical indicators, Calamos Convertible may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Allianzgi Convertible and Calamos Convertible

The main advantage of trading using opposite Allianzgi Convertible and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Convertible 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 Allianzgi Convertible Income 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.