Correlation Between Calamos High and Dreyfus Technology
Can any of the company-specific risk be diversified away by investing in both Calamos High and Dreyfus Technology 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 High and Dreyfus Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos High Income and Dreyfus Technology Growth, you can compare the effects of market volatilities on Calamos High and Dreyfus Technology 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 High with a short position of Dreyfus Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos High and Dreyfus Technology.
Diversification Opportunities for Calamos High and Dreyfus Technology
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Dreyfus is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Calamos High Income and Dreyfus Technology Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Technology Growth and Calamos High 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 High Income are associated (or correlated) with Dreyfus Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Technology Growth has no effect on the direction of Calamos High i.e., Calamos High and Dreyfus Technology go up and down completely randomly.
Pair Corralation between Calamos High and Dreyfus Technology
Assuming the 90 days horizon Calamos High Income is expected to generate 0.1 times more return on investment than Dreyfus Technology. However, Calamos High Income is 10.03 times less risky than Dreyfus Technology. It trades about 0.16 of its potential returns per unit of risk. Dreyfus Technology Growth is currently generating about -0.02 per unit of risk. If you would invest 774.00 in Calamos High Income on November 27, 2024 and sell it today you would earn a total of 10.00 from holding Calamos High Income or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos High Income vs. Dreyfus Technology Growth
Performance |
| Timeline |
| Calamos High Income |
| Dreyfus Technology Growth |
Calamos High and Dreyfus Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos High and Dreyfus Technology
The main advantage of trading using opposite Calamos High and Dreyfus Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos High position performs unexpectedly, Dreyfus Technology 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 Dreyfus Technology will offset losses from the drop in Dreyfus Technology's long position.| Calamos High vs. Barings Active Short | Calamos High vs. T Rowe Price | Calamos High vs. Ms Global Fixed | Calamos High vs. Ultra Short Fixed Income |
| Dreyfus Technology vs. Guidemark E Fixed | Dreyfus Technology vs. Qs International Equity | Dreyfus Technology vs. Transamerica Funds | Dreyfus Technology vs. Dodge International Stock |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |