Correlation Between Calamos Hedged and Innealta Capital
Can any of the company-specific risk be diversified away by investing in both Calamos Hedged and Innealta Capital 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 Innealta Capital 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 Innealta Capital Sector, you can compare the effects of market volatilities on Calamos Hedged and Innealta Capital 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 Innealta Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Hedged and Innealta Capital.
Diversification Opportunities for Calamos Hedged and Innealta Capital
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and Innealta is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Hedged Equity and Innealta Capital Sector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innealta Capital Sector 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 Innealta Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innealta Capital Sector has no effect on the direction of Calamos Hedged i.e., Calamos Hedged and Innealta Capital go up and down completely randomly.
Pair Corralation between Calamos Hedged and Innealta Capital
Assuming the 90 days horizon Calamos Hedged is expected to generate 1.08 times less return on investment than Innealta Capital. But when comparing it to its historical volatility, Calamos Hedged Equity is 1.68 times less risky than Innealta Capital. It trades about 0.13 of its potential returns per unit of risk. Innealta Capital Sector is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 989.00 in Innealta Capital Sector on September 4, 2024 and sell it today you would earn a total of 311.00 from holding Innealta Capital Sector or generate 31.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 92.93% |
| Values | Daily Returns |
Calamos Hedged Equity vs. Innealta Capital Sector
Performance |
| Timeline |
| Calamos Hedged Equity |
| Innealta Capital Sector |
Calamos Hedged and Innealta Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Hedged and Innealta Capital
The main advantage of trading using opposite Calamos Hedged and Innealta Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Hedged position performs unexpectedly, Innealta Capital 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 Innealta Capital will offset losses from the drop in Innealta Capital's long position.| Calamos Hedged vs. Calamos Antetokounmpo Sustainable | Calamos Hedged vs. Innealta Capital Sector | Calamos Hedged vs. Calamos Antetokounmpo Sustainable | Calamos Hedged vs. Calamos Antetokounmpo Sustainable |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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