Correlation Between Armada Hflr and Calamos Alternative
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Calamos Alternative 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 Armada Hflr and Calamos Alternative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Armada Hflr Pr and Calamos Alternative Nasdaq, you can compare the effects of market volatilities on Armada Hflr and Calamos Alternative 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 Armada Hflr with a short position of Calamos Alternative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Calamos Alternative.
Diversification Opportunities for Armada Hflr and Calamos Alternative
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Armada and Calamos is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Calamos Alternative Nasdaq in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Alternative and Armada Hflr 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 Armada Hflr Pr are associated (or correlated) with Calamos Alternative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Alternative has no effect on the direction of Armada Hflr i.e., Armada Hflr and Calamos Alternative go up and down completely randomly.
Pair Corralation between Armada Hflr and Calamos Alternative
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Calamos Alternative. In addition to that, Armada Hflr is 1.07 times more volatile than Calamos Alternative Nasdaq. It trades about -0.11 of its total potential returns per unit of risk. Calamos Alternative Nasdaq is currently generating about 0.24 per unit of volatility. If you would invest 2,763 in Calamos Alternative Nasdaq on September 12, 2024 and sell it today you would earn a total of 109.00 from holding Calamos Alternative Nasdaq or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Armada Hflr Pr vs. Calamos Alternative Nasdaq
Performance |
| Timeline |
| Armada Hflr Pr |
| Calamos Alternative |
Armada Hflr and Calamos Alternative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Calamos Alternative
The main advantage of trading using opposite Armada Hflr and Calamos Alternative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Calamos Alternative 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 Alternative will offset losses from the drop in Calamos Alternative's long position.| Armada Hflr vs. Modiv Inc | Armada Hflr vs. Precinct Properties New | Armada Hflr vs. Global Net Lease | Armada Hflr vs. NexPoint Diversified Real |
| Calamos Alternative vs. iShares Core Growth | Calamos Alternative vs. Alpha Architect Gdsdn | Calamos Alternative vs. STF Tactical Growth | Calamos Alternative vs. Collaborative Investment Series |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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