Correlation Between American Express and Calamos Strategic
Can any of the company-specific risk be diversified away by investing in both American Express and Calamos Strategic 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 Express and Calamos Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and Calamos Strategic Total, you can compare the effects of market volatilities on American Express and Calamos Strategic 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 Express with a short position of Calamos Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Calamos Strategic.
Diversification Opportunities for American Express and Calamos Strategic
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between American and Calamos is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Calamos Strategic Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Strategic Total and American Express 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 Express are associated (or correlated) with Calamos Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Strategic Total has no effect on the direction of American Express i.e., American Express and Calamos Strategic go up and down completely randomly.
Pair Corralation between American Express and Calamos Strategic
Considering the 90-day investment horizon American Express is expected to generate 2.19 times more return on investment than Calamos Strategic. However, American Express is 2.19 times more volatile than Calamos Strategic Total. It trades about 0.19 of its potential returns per unit of risk. Calamos Strategic Total is currently generating about 0.14 per unit of risk. If you would invest 27,123 in American Express on August 24, 2024 and sell it today you would earn a total of 2,177 from holding American Express or generate 8.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Express vs. Calamos Strategic Total
Performance |
| Timeline |
| American Express |
| Calamos Strategic Total |
American Express and Calamos Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Calamos Strategic
The main advantage of trading using opposite American Express and Calamos Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Calamos Strategic 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 Strategic will offset losses from the drop in Calamos Strategic's long position.| American Express vs. Visa Class A | American Express vs. Mastercard | American Express vs. SoFi Technologies | American Express vs. Coca Cola Consolidated |
| Calamos Strategic vs. Calamos Convertible Opportunities | Calamos Strategic vs. Calamos Dynamic Convertible | Calamos Strategic vs. Calamos Global Dynamic | Calamos Strategic vs. Calamos LongShort Equity |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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