Correlation Between Calamos Dividend and Calamos Opportunistic
Can any of the company-specific risk be diversified away by investing in both Calamos Dividend and Calamos Opportunistic 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 Dividend and Calamos Opportunistic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Dividend Growth and Calamos Opportunistic Value, you can compare the effects of market volatilities on Calamos Dividend and Calamos Opportunistic 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 Dividend with a short position of Calamos Opportunistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dividend and Calamos Opportunistic.
Diversification Opportunities for Calamos Dividend and Calamos Opportunistic
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Calamos and Calamos is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dividend Growth and Calamos Opportunistic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Opportunistic and Calamos Dividend 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 Dividend Growth are associated (or correlated) with Calamos Opportunistic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Opportunistic has no effect on the direction of Calamos Dividend i.e., Calamos Dividend and Calamos Opportunistic go up and down completely randomly.
Pair Corralation between Calamos Dividend and Calamos Opportunistic
Assuming the 90 days horizon Calamos Dividend Growth is expected to generate 0.95 times more return on investment than Calamos Opportunistic. However, Calamos Dividend Growth is 1.05 times less risky than Calamos Opportunistic. It trades about 0.13 of its potential returns per unit of risk. Calamos Opportunistic Value is currently generating about 0.12 per unit of risk. If you would invest 1,577 in Calamos Dividend Growth on August 25, 2024 and sell it today you would earn a total of 396.00 from holding Calamos Dividend Growth or generate 25.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dividend Growth vs. Calamos Opportunistic Value
Performance |
| Timeline |
| Calamos Dividend Growth |
| Calamos Opportunistic |
Calamos Dividend and Calamos Opportunistic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dividend and Calamos Opportunistic
The main advantage of trading using opposite Calamos Dividend and Calamos Opportunistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dividend position performs unexpectedly, Calamos Opportunistic 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 Calamos Opportunistic will offset losses from the drop in Calamos Opportunistic's long position.The idea behind Calamos Dividend Growth and Calamos Opportunistic Value pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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