Correlation Between Calamos Hedged and Pace Small/medium
Can any of the company-specific risk be diversified away by investing in both Calamos Hedged and Pace Small/medium 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 Pace Small/medium 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 Pace Smallmedium Value, you can compare the effects of market volatilities on Calamos Hedged and Pace Small/medium 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 Pace Small/medium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Hedged and Pace Small/medium.
Diversification Opportunities for Calamos Hedged and Pace Small/medium
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calamos and Pace is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Hedged Equity and Pace Smallmedium Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pace Smallmedium Value 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 Pace Small/medium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pace Smallmedium Value has no effect on the direction of Calamos Hedged i.e., Calamos Hedged and Pace Small/medium go up and down completely randomly.
Pair Corralation between Calamos Hedged and Pace Small/medium
Assuming the 90 days horizon Calamos Hedged Equity is expected to generate 0.48 times more return on investment than Pace Small/medium. However, Calamos Hedged Equity is 2.1 times less risky than Pace Small/medium. It trades about -0.05 of its potential returns per unit of risk. Pace Smallmedium Value is currently generating about -0.26 per unit of risk. If you would invest 1,696 in Calamos Hedged Equity on November 27, 2024 and sell it today you would lose (7.00) from holding Calamos Hedged Equity or give up 0.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Hedged Equity vs. Pace Smallmedium Value
Performance |
| Timeline |
| Calamos Hedged Equity |
| Pace Smallmedium Value |
Calamos Hedged and Pace Small/medium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Hedged and Pace Small/medium
The main advantage of trading using opposite Calamos Hedged and Pace Small/medium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Hedged position performs unexpectedly, Pace Small/medium 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 Pace Small/medium will offset losses from the drop in Pace Small/medium's long position.| Calamos Hedged vs. Hartford Schroders Emerging | Calamos Hedged vs. Mondrian Emerging Markets | Calamos Hedged vs. Siit Emerging Markets | Calamos Hedged vs. Pimco Emerging Markets |
| Pace Small/medium vs. Angel Oak Financial | Pace Small/medium vs. Gabelli Global Financial | Pace Small/medium vs. Prudential Financial Services | Pace Small/medium vs. Fidelity Advisor Financial |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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