Correlation Between Aqr Large and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Aqr Large 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 Aqr Large and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Large Cap and Calamos Global Equity, you can compare the effects of market volatilities on Aqr Large 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 Aqr Large with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Large and Calamos Global.
Diversification Opportunities for Aqr Large and Calamos Global
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aqr and Calamos is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Large Cap 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 Aqr Large 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 Aqr Large Cap 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 Aqr Large i.e., Aqr Large and Calamos Global go up and down completely randomly.
Pair Corralation between Aqr Large and Calamos Global
Assuming the 90 days horizon Aqr Large Cap is expected to generate 1.22 times more return on investment than Calamos Global. However, Aqr Large is 1.22 times more volatile than Calamos Global Equity. It trades about 0.22 of its potential returns per unit of risk. Calamos Global Equity is currently generating about 0.08 per unit of risk. If you would invest 2,427 in Aqr Large Cap on August 24, 2024 and sell it today you would earn a total of 128.00 from holding Aqr Large Cap or generate 5.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Aqr Large Cap vs. Calamos Global Equity
Performance |
| Timeline |
| Aqr Large Cap |
| Calamos Global Equity |
Aqr Large and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Large and Calamos Global
The main advantage of trading using opposite Aqr Large and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Large 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.| Aqr Large vs. Maryland Tax Free Bond | Aqr Large vs. Bbh Intermediate Municipal | Aqr Large vs. Versatile Bond Portfolio | Aqr Large vs. Ms Global Fixed |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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