Correlation Between Cardano and Calamos Dividend
Can any of the company-specific risk be diversified away by investing in both Cardano and Calamos Dividend 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 Cardano and Calamos Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardano and Calamos Dividend Growth, you can compare the effects of market volatilities on Cardano and Calamos Dividend 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 Cardano with a short position of Calamos Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardano and Calamos Dividend.
Diversification Opportunities for Cardano and Calamos Dividend
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cardano and Calamos is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Cardano and Calamos Dividend Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Dividend Growth and Cardano 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 Cardano are associated (or correlated) with Calamos Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Dividend Growth has no effect on the direction of Cardano i.e., Cardano and Calamos Dividend go up and down completely randomly.
Pair Corralation between Cardano and Calamos Dividend
Assuming the 90 days trading horizon Cardano is expected to generate 7.01 times more return on investment than Calamos Dividend. However, Cardano is 7.01 times more volatile than Calamos Dividend Growth. It trades about 0.11 of its potential returns per unit of risk. Calamos Dividend Growth is currently generating about 0.09 per unit of risk. If you would invest 46.00 in Cardano on October 18, 2024 and sell it today you would earn a total of 60.00 from holding Cardano or generate 130.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 68.95% |
| Values | Daily Returns |
Cardano vs. Calamos Dividend Growth
Performance |
| Timeline |
| Cardano |
| Calamos Dividend Growth |
Cardano and Calamos Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardano and Calamos Dividend
The main advantage of trading using opposite Cardano and Calamos Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardano position performs unexpectedly, Calamos Dividend 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 Dividend will offset losses from the drop in Calamos Dividend's long position.The idea behind Cardano and Calamos Dividend Growth 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.| Calamos Dividend vs. Catalystmillburn Hedge Strategy | Calamos Dividend vs. Franklin Emerging Market | Calamos Dividend vs. Eagle Mlp Strategy | Calamos Dividend vs. Nasdaq 100 2x Strategy |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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