Correlation Between Calamos Market and Catholic Responsible
Can any of the company-specific risk be diversified away by investing in both Calamos Market and Catholic Responsible 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 Catholic Responsible 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 Catholic Responsible Investments, you can compare the effects of market volatilities on Calamos Market and Catholic Responsible 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 Catholic Responsible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Catholic Responsible.
Diversification Opportunities for Calamos Market and Catholic Responsible
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Catholic is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Catholic Responsible Investmen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catholic Responsible 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 Catholic Responsible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catholic Responsible has no effect on the direction of Calamos Market i.e., Calamos Market and Catholic Responsible go up and down completely randomly.
Pair Corralation between Calamos Market and Catholic Responsible
Assuming the 90 days horizon Calamos Market is expected to generate 3.69 times less return on investment than Catholic Responsible. But when comparing it to its historical volatility, Calamos Market Neutral is 1.95 times less risky than Catholic Responsible. It trades about 0.06 of its potential returns per unit of risk. Catholic Responsible Investments is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 955.00 in Catholic Responsible Investments on September 12, 2024 and sell it today you would earn a total of 143.00 from holding Catholic Responsible Investments or generate 14.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Market Neutral vs. Catholic Responsible Investmen
Performance |
| Timeline |
| Calamos Market Neutral |
| Catholic Responsible |
Calamos Market and Catholic Responsible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and Catholic Responsible
The main advantage of trading using opposite Calamos Market and Catholic Responsible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, Catholic Responsible 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 Catholic Responsible will offset losses from the drop in Catholic Responsible's long position.| Calamos Market vs. Prudential Health Sciences | Calamos Market vs. Health Biotchnology Portfolio | Calamos Market vs. Blackrock Health Sciences | Calamos Market vs. Tekla Healthcare Opportunities |
| Catholic Responsible vs. Eagle Mlp Strategy | Catholic Responsible vs. Mid Cap 15x Strategy | Catholic Responsible vs. Pace International Emerging | Catholic Responsible vs. Ashmore 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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