Correlation Between Boston Partners and Calamos Market
Can any of the company-specific risk be diversified away by investing in both Boston Partners 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 Boston Partners and Calamos Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Partners Longshort and Calamos Market Neutral, you can compare the effects of market volatilities on Boston Partners 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 Boston Partners with a short position of Calamos Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Partners and Calamos Market.
Diversification Opportunities for Boston Partners and Calamos Market
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Boston and Calamos is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Boston Partners 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 Boston Partners 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 Boston Partners 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 Boston Partners i.e., Boston Partners and Calamos Market go up and down completely randomly.
Pair Corralation between Boston Partners and Calamos Market
Assuming the 90 days horizon Boston Partners Longshort is expected to generate 5.49 times more return on investment than Calamos Market. However, Boston Partners is 5.49 times more volatile than Calamos Market Neutral. It trades about 0.24 of its potential returns per unit of risk. Calamos Market Neutral is currently generating about 0.27 per unit of risk. If you would invest 1,195 in Boston Partners Longshort on August 31, 2024 and sell it today you would earn a total of 36.00 from holding Boston Partners Longshort or generate 3.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Boston Partners Longshort vs. Calamos Market Neutral
Performance |
| Timeline |
| Boston Partners Longshort |
| Calamos Market Neutral |
Boston Partners and Calamos Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Partners and Calamos Market
The main advantage of trading using opposite Boston Partners and Calamos Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Partners 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.| Boston Partners vs. Boston Partners Longshort | Boston Partners vs. Blackrock Midcap Index | Boston Partners vs. The Arbitrage Fund | Boston Partners vs. Calamos Market Neutral |
| Calamos Market vs. The Arbitrage Fund | Calamos Market vs. The Merger Fund | Calamos Market vs. Gateway Fund Class | Calamos Market vs. Diamond Hill Long Short |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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