Correlation Between Calamos Global and Horizon Spin
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Horizon Spin 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 Global and Horizon Spin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Global Equity and Horizon Spin Off And, you can compare the effects of market volatilities on Calamos Global and Horizon Spin 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 Global with a short position of Horizon Spin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Horizon Spin.
Diversification Opportunities for Calamos Global and Horizon Spin
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Horizon is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Horizon Spin Off And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Spin Off and Calamos Global 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 Global Equity are associated (or correlated) with Horizon Spin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Spin Off has no effect on the direction of Calamos Global i.e., Calamos Global and Horizon Spin go up and down completely randomly.
Pair Corralation between Calamos Global and Horizon Spin
Assuming the 90 days horizon Calamos Global is expected to generate 2.47 times less return on investment than Horizon Spin. But when comparing it to its historical volatility, Calamos Global Equity is 1.92 times less risky than Horizon Spin. It trades about 0.11 of its potential returns per unit of risk. Horizon Spin Off And is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,820 in Horizon Spin Off And on September 2, 2024 and sell it today you would earn a total of 2,749 from holding Horizon Spin Off And or generate 151.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Global Equity vs. Horizon Spin Off And
Performance |
| Timeline |
| Calamos Global Equity |
| Horizon Spin Off |
Calamos Global and Horizon Spin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Horizon Spin
The main advantage of trading using opposite Calamos Global and Horizon Spin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Horizon Spin 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 Horizon Spin will offset losses from the drop in Horizon Spin's long position.| Calamos Global vs. Calamos International Growth | Calamos Global vs. Calamos Global Growth | Calamos Global vs. Calamos Evolving World | Calamos Global vs. Calamos Market Neutral |
| Horizon Spin vs. Oppenheimer International Diversified | Horizon Spin vs. Aqr Diversified Arbitrage | Horizon Spin vs. T Rowe Price | Horizon Spin vs. Tiaa Cref Smallmid Cap Equity |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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