Correlation Between IShares MSCI and Calamos Antetokounmpo
Can any of the company-specific risk be diversified away by investing in both IShares MSCI and Calamos Antetokounmpo 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 IShares MSCI and Calamos Antetokounmpo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI Global and Calamos Antetokounmpo Global, you can compare the effects of market volatilities on IShares MSCI and Calamos Antetokounmpo 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 IShares MSCI with a short position of Calamos Antetokounmpo. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and Calamos Antetokounmpo.
Diversification Opportunities for IShares MSCI and Calamos Antetokounmpo
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IShares and Calamos is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI Global and Calamos Antetokounmpo Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Antetokounmpo and IShares MSCI 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 iShares MSCI Global are associated (or correlated) with Calamos Antetokounmpo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Antetokounmpo has no effect on the direction of IShares MSCI i.e., IShares MSCI and Calamos Antetokounmpo go up and down completely randomly.
Pair Corralation between IShares MSCI and Calamos Antetokounmpo
Given the investment horizon of 90 days iShares MSCI Global is expected to generate 0.66 times more return on investment than Calamos Antetokounmpo. However, iShares MSCI Global is 1.51 times less risky than Calamos Antetokounmpo. It trades about 0.1 of its potential returns per unit of risk. Calamos Antetokounmpo Global is currently generating about 0.06 per unit of risk. If you would invest 9,991 in iShares MSCI Global on November 3, 2024 and sell it today you would earn a total of 1,220 from holding iShares MSCI Global or generate 12.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
iShares MSCI Global vs. Calamos Antetokounmpo Global
Performance |
| Timeline |
| iShares MSCI Global |
| Calamos Antetokounmpo |
IShares MSCI and Calamos Antetokounmpo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and Calamos Antetokounmpo
The main advantage of trading using opposite IShares MSCI and Calamos Antetokounmpo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, Calamos Antetokounmpo 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 Antetokounmpo will offset losses from the drop in Calamos Antetokounmpo's long position.| IShares MSCI vs. iShares MSCI Emerging | IShares MSCI vs. BMO Long Federal | IShares MSCI vs. iShares MSCI EAFE | IShares MSCI vs. Vanguard Total Market |
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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 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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