Correlation Between Alger Mid and Calamos Antetokounmpo
Can any of the company-specific risk be diversified away by investing in both Alger Mid 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 Alger Mid and Calamos Antetokounmpo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alger Mid Cap and Calamos Antetokounmpo Sustainable, you can compare the effects of market volatilities on Alger Mid 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 Alger Mid with a short position of Calamos Antetokounmpo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alger Mid and Calamos Antetokounmpo.
Diversification Opportunities for Alger Mid and Calamos Antetokounmpo
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Alger and Calamos is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Alger Mid Cap and Calamos Antetokounmpo Sustaina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Antetokounmpo and Alger Mid 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 Alger Mid Cap 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 Alger Mid i.e., Alger Mid and Calamos Antetokounmpo go up and down completely randomly.
Pair Corralation between Alger Mid and Calamos Antetokounmpo
Assuming the 90 days horizon Alger Mid Cap is expected to under-perform the Calamos Antetokounmpo. In addition to that, Alger Mid is 2.2 times more volatile than Calamos Antetokounmpo Sustainable. It trades about -0.22 of its total potential returns per unit of risk. Calamos Antetokounmpo Sustainable is currently generating about -0.12 per unit of volatility. If you would invest 1,288 in Calamos Antetokounmpo Sustainable on December 1, 2024 and sell it today you would lose (24.00) from holding Calamos Antetokounmpo Sustainable or give up 1.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alger Mid Cap vs. Calamos Antetokounmpo Sustaina
Performance |
| Timeline |
| Alger Mid Cap |
| Calamos Antetokounmpo |
Alger Mid and Calamos Antetokounmpo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alger Mid and Calamos Antetokounmpo
The main advantage of trading using opposite Alger Mid and Calamos Antetokounmpo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alger Mid 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.| Alger Mid vs. Science Technology Fund | Alger Mid vs. Columbia Global Technology | Alger Mid vs. Allianzgi Technology Fund | Alger Mid vs. Icon Information Technology |
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 Stocks Directory module to find actively traded stocks across global markets.
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