Correlation Between Calamos Alternative and Alpha Architect
Can any of the company-specific risk be diversified away by investing in both Calamos Alternative and Alpha Architect 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 Alpha Architect 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 Alpha Architect Gdsdn, you can compare the effects of market volatilities on Calamos Alternative and Alpha Architect 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 Alpha Architect. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Alternative and Alpha Architect.
Diversification Opportunities for Calamos Alternative and Alpha Architect
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calamos and Alpha is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Alternative Nasdaq and Alpha Architect Gdsdn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Architect Gdsdn 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 Alpha Architect. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Architect Gdsdn has no effect on the direction of Calamos Alternative i.e., Calamos Alternative and Alpha Architect go up and down completely randomly.
Pair Corralation between Calamos Alternative and Alpha Architect
Given the investment horizon of 90 days Calamos Alternative Nasdaq is expected to under-perform the Alpha Architect. In addition to that, Calamos Alternative is 1.63 times more volatile than Alpha Architect Gdsdn. It trades about -0.07 of its total potential returns per unit of risk. Alpha Architect Gdsdn is currently generating about 0.11 per unit of volatility. If you would invest 3,181 in Alpha Architect Gdsdn on October 22, 2024 and sell it today you would earn a total of 36.00 from holding Alpha Architect Gdsdn or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Alternative Nasdaq vs. Alpha Architect Gdsdn
Performance |
| Timeline |
| Calamos Alternative |
| Alpha Architect Gdsdn |
Calamos Alternative and Alpha Architect Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Alternative and Alpha Architect
The main advantage of trading using opposite Calamos Alternative and Alpha Architect positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Alternative position performs unexpectedly, Alpha Architect 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 Alpha Architect will offset losses from the drop in Alpha Architect'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 |
| Alpha Architect vs. Janus Henderson Mortgage Backed | Alpha Architect vs. LeaderSharesTM AlphaFactor Core | Alpha Architect vs. ClearShares Ultra Short Maturity | Alpha Architect vs. Hartford Short Duration |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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