Correlation Between American Funds and Calamos Antetokounmpo
Can any of the company-specific risk be diversified away by investing in both American Funds 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 American Funds and Calamos Antetokounmpo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Funds Fundamental and Calamos Antetokounmpo Global, you can compare the effects of market volatilities on American Funds 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 American Funds with a short position of Calamos Antetokounmpo. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and Calamos Antetokounmpo.
Diversification Opportunities for American Funds and Calamos Antetokounmpo
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between American and Calamos is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Fundamental and Calamos Antetokounmpo Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Antetokounmpo and American Funds 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 American Funds Fundamental 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 American Funds i.e., American Funds and Calamos Antetokounmpo go up and down completely randomly.
Pair Corralation between American Funds and Calamos Antetokounmpo
Assuming the 90 days horizon American Funds Fundamental is expected to generate 1.43 times more return on investment than Calamos Antetokounmpo. However, American Funds is 1.43 times more volatile than Calamos Antetokounmpo Global. It trades about 0.06 of its potential returns per unit of risk. Calamos Antetokounmpo Global is currently generating about 0.06 per unit of risk. If you would invest 7,352 in American Funds Fundamental on November 3, 2024 and sell it today you would earn a total of 1,066 from holding American Funds Fundamental or generate 14.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Funds Fundamental vs. Calamos Antetokounmpo Global
Performance |
| Timeline |
| American Funds Funda |
| Calamos Antetokounmpo |
American Funds and Calamos Antetokounmpo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and Calamos Antetokounmpo
The main advantage of trading using opposite American Funds and Calamos Antetokounmpo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds 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.| American Funds vs. Federated Emerging Market | American Funds vs. Siit Emerging Markets | American Funds vs. Mid Cap 15x Strategy | American Funds vs. Ashmore Emerging Markets |
| Calamos Antetokounmpo vs. Calamos Antetokounmpo Sustainable | Calamos Antetokounmpo vs. Rbb Fund | Calamos Antetokounmpo vs. Ab Tax Aware Short | Calamos Antetokounmpo vs. US Treasury 20 |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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