Correlation Between Artisan Emerging and Calamos Market
Can any of the company-specific risk be diversified away by investing in both Artisan Emerging and Calamos Market 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 Artisan Emerging and Calamos Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Emerging Markets and Calamos Market Neutral, you can compare the effects of market volatilities on Artisan Emerging and Calamos Market 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 Artisan Emerging with a short position of Calamos Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Emerging and Calamos Market.
Diversification Opportunities for Artisan Emerging and Calamos Market
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Artisan and Calamos is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Emerging Markets and Calamos Market Neutral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Market Neutral and Artisan Emerging 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 Artisan Emerging Markets are associated (or correlated) with Calamos Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Market Neutral has no effect on the direction of Artisan Emerging i.e., Artisan Emerging and Calamos Market go up and down completely randomly.
Pair Corralation between Artisan Emerging and Calamos Market
Assuming the 90 days horizon Artisan Emerging Markets is expected to under-perform the Calamos Market. In addition to that, Artisan Emerging is 2.57 times more volatile than Calamos Market Neutral. It trades about -0.02 of its total potential returns per unit of risk. Calamos Market Neutral is currently generating about 0.29 per unit of volatility. If you would invest 1,496 in Calamos Market Neutral on September 3, 2024 and sell it today you would earn a total of 9.00 from holding Calamos Market Neutral or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Emerging Markets vs. Calamos Market Neutral
Performance |
| Timeline |
| Artisan Emerging Markets |
| Calamos Market Neutral |
Artisan Emerging and Calamos Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Emerging and Calamos Market
The main advantage of trading using opposite Artisan Emerging and Calamos Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Emerging position performs unexpectedly, Calamos Market 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 Market will offset losses from the drop in Calamos Market's long position.| Artisan Emerging vs. Morgan Stanley Emerging | Artisan Emerging vs. Kinetics Market Opportunities | Artisan Emerging vs. Massmutual Select Diversified | Artisan Emerging vs. Barings Emerging Markets |
| Calamos Market vs. Calamos Market Neutral | Calamos Market vs. Absolute Convertible Arbitrage | Calamos Market vs. Aqr Diversified Arbitrage | Calamos Market vs. Palmer Square Ssi |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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