Correlation Between Calamos Hedged and Ab Value
Can any of the company-specific risk be diversified away by investing in both Calamos Hedged and Ab Value 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 Hedged and Ab Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Hedged Equity and Ab Value Fund, you can compare the effects of market volatilities on Calamos Hedged and Ab Value 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 Hedged with a short position of Ab Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Hedged and Ab Value.
Diversification Opportunities for Calamos Hedged and Ab Value
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calamos and ABVCX is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Hedged Equity and Ab Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Value Fund and Calamos Hedged 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 Hedged Equity are associated (or correlated) with Ab Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Value Fund has no effect on the direction of Calamos Hedged i.e., Calamos Hedged and Ab Value go up and down completely randomly.
Pair Corralation between Calamos Hedged and Ab Value
Assuming the 90 days horizon Calamos Hedged Equity is expected to generate 0.4 times more return on investment than Ab Value. However, Calamos Hedged Equity is 2.51 times less risky than Ab Value. It trades about 0.07 of its potential returns per unit of risk. Ab Value Fund is currently generating about -0.01 per unit of risk. If you would invest 1,610 in Calamos Hedged Equity on December 4, 2024 and sell it today you would earn a total of 59.00 from holding Calamos Hedged Equity or generate 3.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Hedged Equity vs. Ab Value Fund
Performance |
| Timeline |
| Calamos Hedged Equity |
| Ab Value Fund |
Calamos Hedged and Ab Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Hedged and Ab Value
The main advantage of trading using opposite Calamos Hedged and Ab Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Hedged position performs unexpectedly, Ab Value 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 Ab Value will offset losses from the drop in Ab Value's long position.| Calamos Hedged vs. Goldman Sachs Global | Calamos Hedged vs. Investec Global Franchise | Calamos Hedged vs. Dreyfusstandish Global Fixed | Calamos Hedged vs. Barings Global Floating |
| Ab Value vs. Federated Government Income | Ab Value vs. T Rowe Price | Ab Value vs. Rbb Fund | Ab Value vs. Ft 7934 Corporate |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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