Correlation Between Calamos Hedged and Prudential Real
Can any of the company-specific risk be diversified away by investing in both Calamos Hedged and Prudential Real 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 Prudential Real 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 Prudential Real Estate, you can compare the effects of market volatilities on Calamos Hedged and Prudential Real 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 Prudential Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Hedged and Prudential Real.
Diversification Opportunities for Calamos Hedged and Prudential Real
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Calamos and Prudential is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Hedged Equity and Prudential Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prudential Real Estate 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 Prudential Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prudential Real Estate has no effect on the direction of Calamos Hedged i.e., Calamos Hedged and Prudential Real go up and down completely randomly.
Pair Corralation between Calamos Hedged and Prudential Real
Assuming the 90 days horizon Calamos Hedged Equity is expected to generate 0.5 times more return on investment than Prudential Real. However, Calamos Hedged Equity is 1.99 times less risky than Prudential Real. It trades about 0.09 of its potential returns per unit of risk. Prudential Real Estate is currently generating about 0.01 per unit of risk. If you would invest 1,737 in Calamos Hedged Equity on October 21, 2024 and sell it today you would earn a total of 15.00 from holding Calamos Hedged Equity or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Hedged Equity vs. Prudential Real Estate
Performance |
| Timeline |
| Calamos Hedged Equity |
| Prudential Real Estate |
Calamos Hedged and Prudential Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Hedged and Prudential Real
The main advantage of trading using opposite Calamos Hedged and Prudential Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Hedged position performs unexpectedly, Prudential Real 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 Prudential Real will offset losses from the drop in Prudential Real's long position.| Calamos Hedged vs. Prudential Real Estate | Calamos Hedged vs. Texton Property | Calamos Hedged vs. Baron Real Estate | Calamos Hedged vs. Redwood Real Estate |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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