Correlation Between Calamos Market and Ep Emerging
Can any of the company-specific risk be diversified away by investing in both Calamos Market and Ep Emerging 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 Ep Emerging 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 Ep Emerging Markets, you can compare the effects of market volatilities on Calamos Market and Ep Emerging 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 Ep Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Ep Emerging.
Diversification Opportunities for Calamos Market and Ep Emerging
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Calamos and EPEIX is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Ep Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ep Emerging Markets 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 Ep Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ep Emerging Markets has no effect on the direction of Calamos Market i.e., Calamos Market and Ep Emerging go up and down completely randomly.
Pair Corralation between Calamos Market and Ep Emerging
Assuming the 90 days horizon Calamos Market Neutral is expected to generate 0.44 times more return on investment than Ep Emerging. However, Calamos Market Neutral is 2.25 times less risky than Ep Emerging. It trades about 0.06 of its potential returns per unit of risk. Ep Emerging Markets is currently generating about 0.01 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Market Neutral vs. Ep Emerging Markets
Performance |
| Timeline |
| Calamos Market Neutral |
| Ep Emerging Markets |
Calamos Market and Ep Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and Ep Emerging
The main advantage of trading using opposite Calamos Market and Ep Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, Ep Emerging 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 Ep Emerging will offset losses from the drop in Ep Emerging'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 |
| Ep Emerging vs. Ep Emerging Markets | Ep Emerging vs. Europac International Bond | Ep Emerging vs. Europac International Dividend | Ep Emerging vs. Europac International Dividend |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |