Correlation Between Calamos Market and Dreyfus International
Can any of the company-specific risk be diversified away by investing in both Calamos Market and Dreyfus International 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 Dreyfus International 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 Dreyfus International Bond, you can compare the effects of market volatilities on Calamos Market and Dreyfus International 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 Dreyfus International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Dreyfus International.
Diversification Opportunities for Calamos Market and Dreyfus International
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Calamos and Dreyfus is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Dreyfus International Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus International 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 Dreyfus International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus International has no effect on the direction of Calamos Market i.e., Calamos Market and Dreyfus International go up and down completely randomly.
Pair Corralation between Calamos Market and Dreyfus International
Assuming the 90 days horizon Calamos Market Neutral is expected to generate 0.78 times more return on investment than Dreyfus International. However, Calamos Market Neutral is 1.28 times less risky than Dreyfus International. It trades about 0.06 of its potential returns per unit of risk. Dreyfus International Bond is currently generating about 0.03 per unit of risk. If you would invest 1,402 in Calamos Market Neutral on September 4, 2024 and sell it today you would earn a total of 105.00 from holding Calamos Market Neutral or generate 7.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Market Neutral vs. Dreyfus International Bond
Performance |
| Timeline |
| Calamos Market Neutral |
| Dreyfus International |
Calamos Market and Dreyfus International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and Dreyfus International
The main advantage of trading using opposite Calamos Market and Dreyfus International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, Dreyfus International 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 Dreyfus International will offset losses from the drop in Dreyfus International'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 |
| Dreyfus International vs. Dreyfus High Yield | Dreyfus International vs. Dreyfusthe Boston Pany | Dreyfus International vs. Dreyfus International Bond | Dreyfus International vs. Dreyfus International Equity |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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