Correlation Between Baron Health and Calamos Dividend
Can any of the company-specific risk be diversified away by investing in both Baron Health and Calamos Dividend 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 Baron Health and Calamos Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baron Health Care and Calamos Dividend Growth, you can compare the effects of market volatilities on Baron Health and Calamos Dividend 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 Baron Health with a short position of Calamos Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Health and Calamos Dividend.
Diversification Opportunities for Baron Health and Calamos Dividend
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Baron and Calamos is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Baron Health Care and Calamos Dividend Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Dividend Growth and Baron Health 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 Baron Health Care are associated (or correlated) with Calamos Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Dividend Growth has no effect on the direction of Baron Health i.e., Baron Health and Calamos Dividend go up and down completely randomly.
Pair Corralation between Baron Health and Calamos Dividend
Assuming the 90 days horizon Baron Health Care is expected to under-perform the Calamos Dividend. In addition to that, Baron Health is 1.44 times more volatile than Calamos Dividend Growth. It trades about -0.02 of its total potential returns per unit of risk. Calamos Dividend Growth is currently generating about 0.33 per unit of volatility. If you would invest 1,951 in Calamos Dividend Growth on September 19, 2024 and sell it today you would earn a total of 62.00 from holding Calamos Dividend Growth or generate 3.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baron Health Care vs. Calamos Dividend Growth
Performance |
| Timeline |
| Baron Health Care |
| Calamos Dividend Growth |
Baron Health and Calamos Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Health and Calamos Dividend
The main advantage of trading using opposite Baron Health and Calamos Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Health position performs unexpectedly, Calamos Dividend 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 Dividend will offset losses from the drop in Calamos Dividend's long position.| Baron Health vs. Investec Global Franchise | Baron Health vs. Legg Mason Global | Baron Health vs. Jhancock Global Equity | Baron Health vs. Dreyfusstandish Global Fixed |
| Calamos Dividend vs. Deutsche Health And | Calamos Dividend vs. Prudential Health Sciences | Calamos Dividend vs. Tekla Healthcare Opportunities | Calamos Dividend vs. Baron Health Care |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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