Correlation Between Citigroup and Calamos Opportunistic
Can any of the company-specific risk be diversified away by investing in both Citigroup and Calamos Opportunistic 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 Citigroup and Calamos Opportunistic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Calamos Opportunistic Value, you can compare the effects of market volatilities on Citigroup and Calamos Opportunistic 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 Citigroup with a short position of Calamos Opportunistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Calamos Opportunistic.
Diversification Opportunities for Citigroup and Calamos Opportunistic
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Calamos is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Calamos Opportunistic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Opportunistic and Citigroup 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 Citigroup are associated (or correlated) with Calamos Opportunistic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Opportunistic has no effect on the direction of Citigroup i.e., Citigroup and Calamos Opportunistic go up and down completely randomly.
Pair Corralation between Citigroup and Calamos Opportunistic
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.2 times more return on investment than Calamos Opportunistic. However, Citigroup is 1.2 times more volatile than Calamos Opportunistic Value. It trades about 0.15 of its potential returns per unit of risk. Calamos Opportunistic Value is currently generating about -0.1 per unit of risk. If you would invest 6,968 in Citigroup on November 27, 2024 and sell it today you would earn a total of 997.00 from holding Citigroup or generate 14.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Calamos Opportunistic Value
Performance |
| Timeline |
| Citigroup |
| Calamos Opportunistic |
Citigroup and Calamos Opportunistic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Calamos Opportunistic
The main advantage of trading using opposite Citigroup and Calamos Opportunistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Calamos Opportunistic 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 Opportunistic will offset losses from the drop in Calamos Opportunistic's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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