Correlation Between Calamos Market and Calamos Timpani
Can any of the company-specific risk be diversified away by investing in both Calamos Market and Calamos Timpani 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 Calamos Timpani 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 Calamos Timpani Small, you can compare the effects of market volatilities on Calamos Market and Calamos Timpani 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 Calamos Timpani. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Calamos Timpani.
Diversification Opportunities for Calamos Market and Calamos Timpani
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Calamos and Calamos is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Calamos Timpani Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Timpani Small 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 Calamos Timpani. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Timpani Small has no effect on the direction of Calamos Market i.e., Calamos Market and Calamos Timpani go up and down completely randomly.
Pair Corralation between Calamos Market and Calamos Timpani
Assuming the 90 days horizon Calamos Market Neutral is expected to generate 0.06 times more return on investment than Calamos Timpani. However, Calamos Market Neutral is 15.81 times less risky than Calamos Timpani. It trades about 0.24 of its potential returns per unit of risk. Calamos Timpani Small is currently generating about -0.31 per unit of risk. If you would invest 1,504 in Calamos Market Neutral on December 1, 2024 and sell it today you would earn a total of 8.00 from holding Calamos Market Neutral or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Market Neutral vs. Calamos Timpani Small
Performance |
| Timeline |
| Calamos Market Neutral |
| Calamos Timpani Small |
Calamos Market and Calamos Timpani Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and Calamos Timpani
The main advantage of trading using opposite Calamos Market and Calamos Timpani positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, Calamos Timpani 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 Calamos Timpani will offset losses from the drop in Calamos Timpani's long position.| Calamos Market vs. Pro Blend Servative Term | Calamos Market vs. T Rowe Price | Calamos Market vs. Dreyfusstandish Global Fixed | Calamos Market vs. T Rowe Price |
| Calamos Timpani vs. Putnam Vertible Securities | Calamos Timpani vs. Invesco Vertible Securities | Calamos Timpani vs. Columbia Convertible Securities | Calamos Timpani vs. Absolute Convertible Arbitrage |
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.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |