Correlation Between Ab Discovery and Calamos Hedged
Can any of the company-specific risk be diversified away by investing in both Ab Discovery and Calamos Hedged 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 Discovery and Calamos Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Discovery Value and Calamos Hedged Equity, you can compare the effects of market volatilities on Ab Discovery and Calamos Hedged 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 Discovery with a short position of Calamos Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Discovery and Calamos Hedged.
Diversification Opportunities for Ab Discovery and Calamos Hedged
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between ABYSX and Calamos is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Ab Discovery Value and Calamos Hedged Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Hedged Equity and Ab Discovery 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 Discovery Value are associated (or correlated) with Calamos Hedged. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Hedged Equity has no effect on the direction of Ab Discovery i.e., Ab Discovery and Calamos Hedged go up and down completely randomly.
Pair Corralation between Ab Discovery and Calamos Hedged
Assuming the 90 days horizon Ab Discovery is expected to generate 2.27 times less return on investment than Calamos Hedged. In addition to that, Ab Discovery is 2.91 times more volatile than Calamos Hedged Equity. It trades about 0.02 of its total potential returns per unit of risk. Calamos Hedged Equity is currently generating about 0.12 per unit of volatility. If you would invest 1,332 in Calamos Hedged Equity on November 27, 2024 and sell it today you would earn a total of 357.00 from holding Calamos Hedged Equity or generate 26.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Discovery Value vs. Calamos Hedged Equity
Performance |
| Timeline |
| Ab Discovery Value |
| Calamos Hedged Equity |
Ab Discovery and Calamos Hedged Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Discovery and Calamos Hedged
The main advantage of trading using opposite Ab Discovery and Calamos Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Discovery position performs unexpectedly, Calamos Hedged 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 Hedged will offset losses from the drop in Calamos Hedged's long position.| Ab Discovery vs. Ab Discovery Growth | Ab Discovery vs. Ab International Value | Ab Discovery vs. Small Cap Core | Ab Discovery vs. Ab International Growth |
| Calamos Hedged vs. Hartford Schroders Emerging | Calamos Hedged vs. Mondrian Emerging Markets | Calamos Hedged vs. Siit Emerging Markets | Calamos Hedged vs. Pimco 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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