Correlation Between Calamos Market and Hartford Balanced
Can any of the company-specific risk be diversified away by investing in both Calamos Market and Hartford Balanced 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 Hartford Balanced 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 The Hartford Balanced, you can compare the effects of market volatilities on Calamos Market and Hartford Balanced 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 Hartford Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Hartford Balanced.
Diversification Opportunities for Calamos Market and Hartford Balanced
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and Hartford is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and The Hartford Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Balanced 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 Hartford Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Balanced has no effect on the direction of Calamos Market i.e., Calamos Market and Hartford Balanced go up and down completely randomly.
Pair Corralation between Calamos Market and Hartford Balanced
Assuming the 90 days horizon Calamos Market is expected to generate 1.28 times less return on investment than Hartford Balanced. In addition to that, Calamos Market is 1.06 times more volatile than The Hartford Balanced. It trades about 0.06 of its total potential returns per unit of risk. The Hartford Balanced is currently generating about 0.08 per unit of volatility. If you would invest 1,314 in The Hartford Balanced on September 12, 2024 and sell it today you would earn a total of 230.00 from holding The Hartford Balanced or generate 17.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Market Neutral vs. The Hartford Balanced
Performance |
| Timeline |
| Calamos Market Neutral |
| Hartford Balanced |
Calamos Market and Hartford Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and Hartford Balanced
The main advantage of trading using opposite Calamos Market and Hartford Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, Hartford Balanced 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 Hartford Balanced will offset losses from the drop in Hartford Balanced'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 |
| Hartford Balanced vs. Origin Emerging Markets | Hartford Balanced vs. Rbc Emerging Markets | Hartford Balanced vs. Aqr Long Short Equity | Hartford Balanced vs. T Rowe Price |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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