Correlation Between Calamos Market and Cavanal Hill
Can any of the company-specific risk be diversified away by investing in both Calamos Market and Cavanal Hill 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 Cavanal Hill 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 Cavanal Hill Ultra, you can compare the effects of market volatilities on Calamos Market and Cavanal Hill 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 Cavanal Hill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Cavanal Hill.
Diversification Opportunities for Calamos Market and Cavanal Hill
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Cavanal is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Cavanal Hill Ultra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cavanal Hill Ultra 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 Cavanal Hill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cavanal Hill Ultra has no effect on the direction of Calamos Market i.e., Calamos Market and Cavanal Hill go up and down completely randomly.
Pair Corralation between Calamos Market and Cavanal Hill
Assuming the 90 days horizon Calamos Market Neutral is expected to generate 4.67 times more return on investment than Cavanal Hill. However, Calamos Market is 4.67 times more volatile than Cavanal Hill Ultra. It trades about 0.33 of its potential returns per unit of risk. Cavanal Hill Ultra is currently generating about 0.22 per unit of risk. If you would invest 1,496 in Calamos Market Neutral on September 4, 2024 and sell it today you would earn a total of 11.00 from holding Calamos Market Neutral or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Calamos Market Neutral vs. Cavanal Hill Ultra
Performance |
| Timeline |
| Calamos Market Neutral |
| Cavanal Hill Ultra |
Calamos Market and Cavanal Hill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and Cavanal Hill
The main advantage of trading using opposite Calamos Market and Cavanal Hill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, Cavanal Hill 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 Cavanal Hill will offset losses from the drop in Cavanal Hill's long position.| Calamos Market vs. Needham Aggressive Growth | Calamos Market vs. Morningstar Aggressive Growth | Calamos Market vs. Vanguard Star Fund | Calamos Market vs. Goldman Sachs High |
| Cavanal Hill vs. Bond Fund Investor | Cavanal Hill vs. Strategic Enhanced Yield | Cavanal Hill vs. Cavanal Hill Hedged | Cavanal Hill vs. Limited Duration Fund |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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