Correlation Between Calamos Market and Fidelity Advisor
Can any of the company-specific risk be diversified away by investing in both Calamos Market and Fidelity Advisor 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 Fidelity Advisor 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 Fidelity Advisor Series, you can compare the effects of market volatilities on Calamos Market and Fidelity Advisor 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 Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Fidelity Advisor.
Diversification Opportunities for Calamos Market and Fidelity Advisor
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and Fidelity is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Fidelity Advisor Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Series 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 Fidelity Advisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advisor Series has no effect on the direction of Calamos Market i.e., Calamos Market and Fidelity Advisor go up and down completely randomly.
Pair Corralation between Calamos Market and Fidelity Advisor
Assuming the 90 days horizon Calamos Market is expected to generate 8.34 times less return on investment than Fidelity Advisor. But when comparing it to its historical volatility, Calamos Market Neutral is 5.45 times less risky than Fidelity Advisor. It trades about 0.08 of its potential returns per unit of risk. Fidelity Advisor Series is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,137 in Fidelity Advisor Series on September 12, 2024 and sell it today you would earn a total of 697.00 from holding Fidelity Advisor Series or generate 61.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Market Neutral vs. Fidelity Advisor Series
Performance |
| Timeline |
| Calamos Market Neutral |
| Fidelity Advisor Series |
Calamos Market and Fidelity Advisor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and Fidelity Advisor
The main advantage of trading using opposite Calamos Market and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, Fidelity Advisor 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 Fidelity Advisor will offset losses from the drop in Fidelity Advisor'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 |
| Fidelity Advisor vs. Needham Aggressive Growth | Fidelity Advisor vs. Ab High Income | Fidelity Advisor vs. Artisan High Income | Fidelity Advisor vs. Alliancebernstein Global High |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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