Correlation Between Alps/alerian Energy and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Alps/alerian Energy and Calamos Global 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 Alps/alerian Energy and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alpsalerian Energy Infrastructure and Calamos Global Equity, you can compare the effects of market volatilities on Alps/alerian Energy and Calamos Global 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 Alps/alerian Energy with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alps/alerian Energy and Calamos Global.
Diversification Opportunities for Alps/alerian Energy and Calamos Global
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alps/alerian and Calamos is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Alpsalerian Energy Infrastruct and Calamos Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Equity and Alps/alerian Energy 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 Alpsalerian Energy Infrastructure are associated (or correlated) with Calamos Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Global Equity has no effect on the direction of Alps/alerian Energy i.e., Alps/alerian Energy and Calamos Global go up and down completely randomly.
Pair Corralation between Alps/alerian Energy and Calamos Global
Assuming the 90 days horizon Alpsalerian Energy Infrastructure is expected to generate 0.94 times more return on investment than Calamos Global. However, Alpsalerian Energy Infrastructure is 1.06 times less risky than Calamos Global. It trades about 0.11 of its potential returns per unit of risk. Calamos Global Equity is currently generating about 0.09 per unit of risk. If you would invest 987.00 in Alpsalerian Energy Infrastructure on August 25, 2024 and sell it today you would earn a total of 626.00 from holding Alpsalerian Energy Infrastructure or generate 63.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alpsalerian Energy Infrastruct vs. Calamos Global Equity
Performance |
| Timeline |
| Alps/alerian Energy |
| Calamos Global Equity |
Alps/alerian Energy and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alps/alerian Energy and Calamos Global
The main advantage of trading using opposite Alps/alerian Energy and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alps/alerian Energy position performs unexpectedly, Calamos Global 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 Global will offset losses from the drop in Calamos Global's long position.| Alps/alerian Energy vs. Vanguard Total Stock | Alps/alerian Energy vs. Vanguard 500 Index | Alps/alerian Energy vs. Vanguard Total Stock | Alps/alerian Energy vs. Vanguard Total Stock |
| Calamos Global vs. Hennessy Bp Energy | Calamos Global vs. Franklin Natural Resources | Calamos Global vs. Short Oil Gas | Calamos Global vs. Alpsalerian Energy Infrastructure |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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