Correlation Between Calamos Market and Ishares Municipal
Can any of the company-specific risk be diversified away by investing in both Calamos Market and Ishares Municipal 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 Ishares Municipal 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 Ishares Municipal Bond, you can compare the effects of market volatilities on Calamos Market and Ishares Municipal 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 Ishares Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Ishares Municipal.
Diversification Opportunities for Calamos Market and Ishares Municipal
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Ishares is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Ishares Municipal Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ishares Municipal Bond 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 Ishares Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ishares Municipal Bond has no effect on the direction of Calamos Market i.e., Calamos Market and Ishares Municipal go up and down completely randomly.
Pair Corralation between Calamos Market and Ishares Municipal
Assuming the 90 days horizon Calamos Market is expected to generate 2.17 times less return on investment than Ishares Municipal. But when comparing it to its historical volatility, Calamos Market Neutral is 2.86 times less risky than Ishares Municipal. It trades about 0.29 of its potential returns per unit of risk. Ishares Municipal Bond is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,104 in Ishares Municipal Bond on September 5, 2024 and sell it today you would earn a total of 16.00 from holding Ishares Municipal Bond or generate 1.45% 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. Ishares Municipal Bond
Performance |
| Timeline |
| Calamos Market Neutral |
| Ishares Municipal Bond |
Calamos Market and Ishares Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and Ishares Municipal
The main advantage of trading using opposite Calamos Market and Ishares Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, Ishares Municipal 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 Ishares Municipal will offset losses from the drop in Ishares Municipal's long position.| Calamos Market vs. Innealta Capital Sector | Calamos Market vs. Calamos Antetokounmpo Sustainable | Calamos Market vs. Calamos Opportunistic Value | Calamos Market vs. Calamos Opportunistic Value |
| Ishares Municipal vs. Calamos Market Neutral | Ishares Municipal vs. Shelton Emerging Markets | Ishares Municipal vs. Transamerica Emerging Markets | Ishares Municipal vs. Rbc Emerging Markets |
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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