Correlation Between Ab Select and Calamos Market
Can any of the company-specific risk be diversified away by investing in both Ab Select 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 Ab Select and Calamos Market 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 Market Neutral, you can compare the effects of market volatilities on Ab Select 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 Ab Select with a short position of Calamos Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Select and Calamos Market.
Diversification Opportunities for Ab Select and Calamos Market
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ASCLX and Calamos is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Ab Select Longshort 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 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 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 Ab Select i.e., Ab Select and Calamos Market go up and down completely randomly.
Pair Corralation between Ab Select and Calamos Market
Assuming the 90 days horizon Ab Select Longshort is expected to generate 6.05 times more return on investment than Calamos Market. However, Ab Select is 6.05 times more volatile than Calamos Market Neutral. It trades about 0.16 of its potential returns per unit of risk. Calamos Market Neutral is currently generating about 0.2 per unit of risk. If you would invest 1,357 in Ab Select Longshort on August 29, 2024 and sell it today you would earn a total of 50.00 from holding Ab Select Longshort or generate 3.68% 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 Market Neutral
Performance |
| Timeline |
| Ab Select Longshort |
| Calamos Market Neutral |
Ab Select and Calamos Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Select and Calamos Market
The main advantage of trading using opposite Ab Select and Calamos Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Select 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.| Ab Select vs. Neuberger Berman Long | Ab Select vs. Neuberger Berman Long | Ab Select vs. Pimco Rae Worldwide |
| Calamos Market vs. Ab Select Longshort | Calamos Market vs. Barings Active Short | Calamos Market vs. Nebraska Municipal Fund | Calamos Market vs. Astor Longshort Fund |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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