Correlation Between Calamos Alternative and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Calamos Alternative and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on Calamos Alternative and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Alternative and Dow Jones.
Diversification Opportunities for Calamos Alternative and Dow Jones
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and Dow is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Alternative Nasdaq and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Calamos Alternative i.e., Calamos Alternative and Dow Jones go up and down completely randomly.
Pair Corralation between Calamos Alternative and Dow Jones
Given the investment horizon of 90 days Calamos Alternative Nasdaq is expected to generate 1.37 times more return on investment than Dow Jones. However, Calamos Alternative is 1.37 times more volatile than Dow Jones Industrial. It trades about 0.24 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.02 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Alternative Nasdaq vs. Dow Jones Industrial
Performance |
| Timeline |
Calamos Alternative and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Calamos Alternative Nasdaq
Pair trading matchups for Calamos Alternative
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Calamos Alternative and Dow Jones
The main advantage of trading using opposite Calamos Alternative and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Alternative position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' 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 |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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