Correlation Between Ishares Msci and Calamos Hedged
Can any of the company-specific risk be diversified away by investing in both Ishares Msci 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 Ishares Msci and Calamos Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ishares Msci Eafe and Calamos Hedged Equity, you can compare the effects of market volatilities on Ishares Msci 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 Ishares Msci with a short position of Calamos Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ishares Msci and Calamos Hedged.
Diversification Opportunities for Ishares Msci and Calamos Hedged
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ishares and Calamos is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Ishares Msci Eafe 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 Ishares Msci 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 Ishares Msci Eafe 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 Ishares Msci i.e., Ishares Msci and Calamos Hedged go up and down completely randomly.
Pair Corralation between Ishares Msci and Calamos Hedged
Assuming the 90 days horizon Ishares Msci Eafe is expected to under-perform the Calamos Hedged. In addition to that, Ishares Msci is 1.99 times more volatile than Calamos Hedged Equity. It trades about -0.01 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 |
Ishares Msci Eafe vs. Calamos Hedged Equity
Performance |
| Timeline |
| Ishares Msci Eafe |
| Calamos Hedged Equity |
Ishares Msci and Calamos Hedged Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ishares Msci and Calamos Hedged
The main advantage of trading using opposite Ishares Msci and Calamos Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ishares Msci 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.| Ishares Msci vs. Blackrock California Municipal | Ishares Msci vs. Blackrock Balanced Capital | Ishares Msci vs. Blackrock Eurofund Class | Ishares Msci vs. Blackrock Funds |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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