Correlation Between Calamos Alternative and FT Vest
Can any of the company-specific risk be diversified away by investing in both Calamos Alternative and FT Vest 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 FT Vest 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 FT Vest Equity, you can compare the effects of market volatilities on Calamos Alternative and FT Vest 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 FT Vest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Alternative and FT Vest.
Diversification Opportunities for Calamos Alternative and FT Vest
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Calamos and DHDG is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Alternative Nasdaq and FT Vest Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FT Vest Equity 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 FT Vest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FT Vest Equity has no effect on the direction of Calamos Alternative i.e., Calamos Alternative and FT Vest go up and down completely randomly.
Pair Corralation between Calamos Alternative and FT Vest
Given the investment horizon of 90 days Calamos Alternative Nasdaq is expected to generate 2.8 times more return on investment than FT Vest. However, Calamos Alternative is 2.8 times more volatile than FT Vest Equity. It trades about 0.25 of its potential returns per unit of risk. FT Vest Equity is currently generating about 0.18 per unit of risk. If you would invest 2,739 in Calamos Alternative Nasdaq on September 14, 2024 and sell it today you would earn a total of 113.00 from holding Calamos Alternative Nasdaq or generate 4.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Alternative Nasdaq vs. FT Vest Equity
Performance |
| Timeline |
| Calamos Alternative |
| FT Vest Equity |
Calamos Alternative and FT Vest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Alternative and FT Vest
The main advantage of trading using opposite Calamos Alternative and FT Vest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Alternative position performs unexpectedly, FT Vest 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 FT Vest will offset losses from the drop in FT Vest's long position.| Calamos Alternative vs. FT Vest Equity | Calamos Alternative vs. Northern Lights | Calamos Alternative vs. Dimensional International High | Calamos Alternative vs. JPMorgan Fundamental Data |
| FT Vest vs. Northern Lights | FT Vest vs. Dimensional International High | FT Vest vs. JPMorgan Fundamental Data | FT Vest vs. Matthews China Discovery |
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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