Correlation Between Calamos High and Innealta Capital
Can any of the company-specific risk be diversified away by investing in both Calamos High 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 High 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 High Income and Innealta Capital Sector, you can compare the effects of market volatilities on Calamos High 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 High with a short position of Innealta Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos High and Innealta Capital.
Diversification Opportunities for Calamos High and Innealta Capital
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Innealta is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Calamos High Income 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 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 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 High i.e., Calamos High and Innealta Capital go up and down completely randomly.
Pair Corralation between Calamos High and Innealta Capital
Assuming the 90 days horizon Calamos High is expected to generate 7.49 times less return on investment than Innealta Capital. But when comparing it to its historical volatility, Calamos High Income is 4.44 times less risky than Innealta Capital. It trades about 0.06 of its potential returns per unit of risk. Innealta Capital Sector is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,264 in Innealta Capital Sector on September 4, 2024 and sell it today you would earn a total of 36.00 from holding Innealta Capital Sector or generate 2.85% 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. Innealta Capital Sector
Performance |
| Timeline |
| Calamos High Income |
| Innealta Capital Sector |
Calamos High and Innealta Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos High and Innealta Capital
The main advantage of trading using opposite Calamos High and Innealta Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos High 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 High vs. Artisan Emerging Markets | Calamos High vs. Morgan Stanley Emerging | Calamos High vs. Shelton Emerging Markets | Calamos High vs. The Hartford Emerging |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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