Correlation Between Calamos Vertible and Locorr Market
Can any of the company-specific risk be diversified away by investing in both Calamos Vertible and Locorr Market 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 Vertible and Locorr Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Vertible Fund and Locorr Market Trend, you can compare the effects of market volatilities on Calamos Vertible and Locorr Market 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 Vertible with a short position of Locorr Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Vertible and Locorr Market.
Diversification Opportunities for Calamos Vertible and Locorr Market
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calamos and Locorr is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Vertible Fund and Locorr Market Trend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Locorr Market Trend and Calamos Vertible 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 Vertible Fund are associated (or correlated) with Locorr Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Locorr Market Trend has no effect on the direction of Calamos Vertible i.e., Calamos Vertible and Locorr Market go up and down completely randomly.
Pair Corralation between Calamos Vertible and Locorr Market
Assuming the 90 days horizon Calamos Vertible Fund is expected to under-perform the Locorr Market. In addition to that, Calamos Vertible is 1.32 times more volatile than Locorr Market Trend. It trades about -0.05 of its total potential returns per unit of risk. Locorr Market Trend is currently generating about 0.05 per unit of volatility. If you would invest 1,025 in Locorr Market Trend on November 2, 2024 and sell it today you would earn a total of 11.00 from holding Locorr Market Trend or generate 1.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Vertible Fund vs. Locorr Market Trend
Performance |
| Timeline |
| Calamos Vertible |
| Locorr Market Trend |
Calamos Vertible and Locorr Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Vertible and Locorr Market
The main advantage of trading using opposite Calamos Vertible and Locorr Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Vertible position performs unexpectedly, Locorr Market 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 Locorr Market will offset losses from the drop in Locorr Market's long position.| Calamos Vertible vs. Fidelity Advisor Technology | Calamos Vertible vs. Blackrock Science Technology | Calamos Vertible vs. Red Oak Technology | Calamos Vertible vs. Invesco Technology Fund |
| Locorr Market vs. Small Cap Value | Locorr Market vs. Fidelity Small Cap | Locorr Market vs. Heartland Value Plus | Locorr Market vs. Small Cap Value Profund |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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