Correlation Between Calamos Market and Aqr Diversified
Can any of the company-specific risk be diversified away by investing in both Calamos Market and Aqr Diversified 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 Market and Aqr Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Market Neutral and Aqr Diversified Arbitrage, you can compare the effects of market volatilities on Calamos Market and Aqr Diversified 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 Market with a short position of Aqr Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Aqr Diversified.
Diversification Opportunities for Calamos Market and Aqr Diversified
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Aqr is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Aqr Diversified Arbitrage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Diversified Arbitrage and Calamos Market 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 Market Neutral are associated (or correlated) with Aqr Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Diversified Arbitrage has no effect on the direction of Calamos Market i.e., Calamos Market and Aqr Diversified go up and down completely randomly.
Pair Corralation between Calamos Market and Aqr Diversified
Assuming the 90 days horizon Calamos Market Neutral is expected to generate 1.51 times more return on investment than Aqr Diversified. However, Calamos Market is 1.51 times more volatile than Aqr Diversified Arbitrage. It trades about 0.06 of its potential returns per unit of risk. Aqr Diversified Arbitrage is currently generating about 0.08 per unit of risk. If you would invest 1,400 in Calamos Market Neutral on August 31, 2024 and sell it today you would earn a total of 105.00 from holding Calamos Market Neutral or generate 7.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Market Neutral vs. Aqr Diversified Arbitrage
Performance |
| Timeline |
| Calamos Market Neutral |
| Aqr Diversified Arbitrage |
Calamos Market and Aqr Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and Aqr Diversified
The main advantage of trading using opposite Calamos Market and Aqr Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, Aqr Diversified 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 Aqr Diversified will offset losses from the drop in Aqr Diversified's long position.| Calamos Market vs. Metropolitan West High | Calamos Market vs. Needham Aggressive Growth | Calamos Market vs. Ab High Income | Calamos Market vs. Siit High Yield |
| Aqr Diversified vs. Nuveen Minnesota Municipal | Aqr Diversified vs. T Rowe Price | Aqr Diversified vs. Federated Ohio Municipal | Aqr Diversified vs. Pace Municipal Fixed |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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