Correlation Between Calamos Market and Aberdeen Emerging
Can any of the company-specific risk be diversified away by investing in both Calamos Market and Aberdeen 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 Aberdeen 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 Aberdeen Emerging Markets, you can compare the effects of market volatilities on Calamos Market and Aberdeen 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 Aberdeen Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Aberdeen Emerging.
Diversification Opportunities for Calamos Market and Aberdeen Emerging
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Calamos and Aberdeen is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Aberdeen Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen 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 Aberdeen Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Emerging Markets has no effect on the direction of Calamos Market i.e., Calamos Market and Aberdeen Emerging go up and down completely randomly.
Pair Corralation between Calamos Market and Aberdeen Emerging
Assuming the 90 days horizon Calamos Market Neutral is expected to generate 0.12 times more return on investment than Aberdeen Emerging. However, Calamos Market Neutral is 8.24 times less risky than Aberdeen Emerging. It trades about 0.33 of its potential returns per unit of risk. Aberdeen Emerging Markets is currently generating about -0.13 per unit of risk. If you would invest 1,496 in Calamos Market Neutral on September 4, 2024 and sell it today you would earn a total of 11.00 from holding Calamos Market Neutral or generate 0.74% 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. Aberdeen Emerging Markets
Performance |
| Timeline |
| Calamos Market Neutral |
| Aberdeen Emerging Markets |
Calamos Market and Aberdeen Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and Aberdeen Emerging
The main advantage of trading using opposite Calamos Market and Aberdeen Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, Aberdeen 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 Aberdeen Emerging will offset losses from the drop in Aberdeen 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 |
| Aberdeen Emerging vs. Bbh Intermediate Municipal | Aberdeen Emerging vs. Artisan High Income | Aberdeen Emerging vs. Versatile Bond Portfolio | Aberdeen Emerging vs. Multisector Bond Sma |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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