Correlation Between Ab Select and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both Ab Select and Calamos Growth 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 Ab Select and Calamos Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Select Longshort and Calamos Growth And, you can compare the effects of market volatilities on Ab Select and Calamos Growth 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 Ab Select with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Select and Calamos Growth.
Diversification Opportunities for Ab Select and Calamos Growth
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between ASCLX and Calamos is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Ab Select Longshort and Calamos Growth And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth And and Ab Select 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 Ab Select Longshort are associated (or correlated) with Calamos Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Growth And has no effect on the direction of Ab Select i.e., Ab Select and Calamos Growth go up and down completely randomly.
Pair Corralation between Ab Select and Calamos Growth
Assuming the 90 days horizon Ab Select is expected to generate 1.25 times less return on investment than Calamos Growth. But when comparing it to its historical volatility, Ab Select Longshort is 1.36 times less risky than Calamos Growth. It trades about 0.13 of its potential returns per unit of risk. Calamos Growth And is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 4,295 in Calamos Growth And on September 3, 2024 and sell it today you would earn a total of 612.00 from holding Calamos Growth And or generate 14.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Select Longshort vs. Calamos Growth And
Performance |
| Timeline |
| Ab Select Longshort |
| Calamos Growth And |
Ab Select and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Select and Calamos Growth
The main advantage of trading using opposite Ab Select and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Select position performs unexpectedly, Calamos Growth 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 Growth will offset losses from the drop in Calamos Growth's long position.| Ab Select vs. Vanguard Financials Index | Ab Select vs. Davis Financial Fund | Ab Select vs. Icon Financial Fund | Ab Select vs. Blackrock Financial Institutions |
| Calamos Growth vs. Vanguard Small Cap Value | Calamos Growth vs. Pace Smallmedium Value | Calamos Growth vs. Mutual Of America | Calamos Growth vs. Hennessy Nerstone Mid |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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