Correlation Between Calamos Alternative and Collaborative Investment
Can any of the company-specific risk be diversified away by investing in both Calamos Alternative and Collaborative Investment 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 Collaborative Investment 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 Collaborative Investment Series, you can compare the effects of market volatilities on Calamos Alternative and Collaborative Investment 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 Collaborative Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Alternative and Collaborative Investment.
Diversification Opportunities for Calamos Alternative and Collaborative Investment
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calamos and Collaborative is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Alternative Nasdaq and Collaborative Investment Serie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Collaborative Investment 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 Collaborative Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Collaborative Investment has no effect on the direction of Calamos Alternative i.e., Calamos Alternative and Collaborative Investment go up and down completely randomly.
Pair Corralation between Calamos Alternative and Collaborative Investment
Given the investment horizon of 90 days Calamos Alternative Nasdaq is expected to generate 1.2 times more return on investment than Collaborative Investment. However, Calamos Alternative is 1.2 times more volatile than Collaborative Investment Series. It trades about 0.01 of its potential returns per unit of risk. Collaborative Investment Series is currently generating about -0.25 per unit of risk. If you would invest 2,826 in Calamos Alternative Nasdaq on October 7, 2024 and sell it today you would earn a total of 2.00 from holding Calamos Alternative Nasdaq or generate 0.07% 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. Collaborative Investment Serie
Performance |
| Timeline |
| Calamos Alternative |
| Collaborative Investment |
Calamos Alternative and Collaborative Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Alternative and Collaborative Investment
The main advantage of trading using opposite Calamos Alternative and Collaborative Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Alternative position performs unexpectedly, Collaborative Investment 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 Collaborative Investment will offset losses from the drop in Collaborative Investment's long position.| Calamos Alternative vs. FT Vest Equity | Calamos Alternative vs. Northern Lights | Calamos Alternative vs. Dimensional International High | Calamos Alternative vs. First Trust Exchange Traded |
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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