Correlation Between Ab Impact and Calamos Market
Can any of the company-specific risk be diversified away by investing in both Ab Impact and Calamos Market 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 Ab Impact and Calamos Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Impact Municipal and Calamos Market Neutral, you can compare the effects of market volatilities on Ab Impact and Calamos Market 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 Ab Impact with a short position of Calamos Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Impact and Calamos Market.
Diversification Opportunities for Ab Impact and Calamos Market
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ABIMX and Calamos is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Ab Impact Municipal and Calamos Market Neutral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Market Neutral and Ab Impact 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 Ab Impact Municipal are associated (or correlated) with Calamos Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Market Neutral has no effect on the direction of Ab Impact i.e., Ab Impact and Calamos Market go up and down completely randomly.
Pair Corralation between Ab Impact and Calamos Market
Assuming the 90 days horizon Ab Impact Municipal is expected to generate 2.45 times more return on investment than Calamos Market. However, Ab Impact is 2.45 times more volatile than Calamos Market Neutral. It trades about 0.18 of its potential returns per unit of risk. Calamos Market Neutral is currently generating about 0.26 per unit of risk. If you would invest 868.00 in Ab Impact Municipal on September 1, 2024 and sell it today you would earn a total of 131.00 from holding Ab Impact Municipal or generate 15.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Impact Municipal vs. Calamos Market Neutral
Performance |
| Timeline |
| Ab Impact Municipal |
| Calamos Market Neutral |
Ab Impact and Calamos Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Impact and Calamos Market
The main advantage of trading using opposite Ab Impact and Calamos Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Impact position performs unexpectedly, Calamos Market 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 Market will offset losses from the drop in Calamos Market's long position.| Ab Impact vs. Barings Emerging Markets | Ab Impact vs. Artisan Emerging Markets | Ab Impact vs. Black Oak Emerging | Ab Impact vs. Ashmore Emerging Markets |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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