Correlation Between Calamos Alternative and IShares Core
Can any of the company-specific risk be diversified away by investing in both Calamos Alternative and IShares Core 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 Calamos Alternative and IShares Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Alternative Nasdaq and iShares Core Growth, you can compare the effects of market volatilities on Calamos Alternative and IShares Core 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 Calamos Alternative with a short position of IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Alternative and IShares Core.
Diversification Opportunities for Calamos Alternative and IShares Core
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and IShares is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Alternative Nasdaq and iShares Core Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core Growth and Calamos Alternative 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 Calamos Alternative Nasdaq are associated (or correlated) with IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core Growth has no effect on the direction of Calamos Alternative i.e., Calamos Alternative and IShares Core go up and down completely randomly.
Pair Corralation between Calamos Alternative and IShares Core
Given the investment horizon of 90 days Calamos Alternative Nasdaq is expected to generate 2.37 times more return on investment than IShares Core. However, Calamos Alternative is 2.37 times more volatile than iShares Core Growth. It trades about 0.24 of its potential returns per unit of risk. iShares Core Growth is currently generating about 0.15 per unit of risk. If you would invest 2,763 in Calamos Alternative Nasdaq on September 12, 2024 and sell it today you would earn a total of 109.00 from holding Calamos Alternative Nasdaq or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Alternative Nasdaq vs. iShares Core Growth
Performance |
| Timeline |
| Calamos Alternative |
| iShares Core Growth |
Calamos Alternative and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Alternative and IShares Core
The main advantage of trading using opposite Calamos Alternative and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Alternative position performs unexpectedly, IShares Core 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 IShares Core will offset losses from the drop in IShares Core's long position.| Calamos Alternative vs. iShares Core Growth | Calamos Alternative vs. Alpha Architect Gdsdn | Calamos Alternative vs. STF Tactical Growth | Calamos Alternative vs. Collaborative Investment Series |
| IShares Core vs. iShares Core Moderate | IShares Core vs. iShares Core Aggressive | IShares Core vs. iShares Core Conservative | IShares Core vs. Vanguard Mega Cap |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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