Correlation Between Blackrock International and Calamos Hedged
Can any of the company-specific risk be diversified away by investing in both Blackrock International and Calamos Hedged 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 Blackrock International and Calamos Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock International Index and Calamos Hedged Equity, you can compare the effects of market volatilities on Blackrock International and Calamos Hedged 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 Blackrock International with a short position of Calamos Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock International and Calamos Hedged.
Diversification Opportunities for Blackrock International and Calamos Hedged
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Blackrock and Calamos is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock International Index and Calamos Hedged Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Hedged Equity and Blackrock International 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 Blackrock International Index are associated (or correlated) with Calamos Hedged. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Hedged Equity has no effect on the direction of Blackrock International i.e., Blackrock International and Calamos Hedged go up and down completely randomly.
Pair Corralation between Blackrock International and Calamos Hedged
Assuming the 90 days horizon Blackrock International Index is expected to under-perform the Calamos Hedged. In addition to that, Blackrock International is 1.88 times more volatile than Calamos Hedged Equity. It trades about -0.09 of its total potential returns per unit of risk. Calamos Hedged Equity is currently generating about 0.32 per unit of volatility. If you would invest 1,700 in Calamos Hedged Equity on September 1, 2024 and sell it today you would earn a total of 50.00 from holding Calamos Hedged Equity or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Blackrock International Index vs. Calamos Hedged Equity
Performance |
| Timeline |
| Blackrock International |
| Calamos Hedged Equity |
Blackrock International and Calamos Hedged Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock International and Calamos Hedged
The main advantage of trading using opposite Blackrock International and Calamos Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock International position performs unexpectedly, Calamos Hedged 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 Hedged will offset losses from the drop in Calamos Hedged's long position.| Blackrock International vs. Blackrock Midcap Index | Blackrock International vs. Blackrock Small Cap | Blackrock International vs. State Street Equity | Blackrock International vs. T Rowe Price |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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