Correlation Between Calamos Market and The Emerging
Can any of the company-specific risk be diversified away by investing in both Calamos Market and The 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 The 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 The Emerging Markets, you can compare the effects of market volatilities on Calamos Market and The 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 The Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and The Emerging.
Diversification Opportunities for Calamos Market and The Emerging
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Calamos and The is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and The Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 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 The Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets has no effect on the direction of Calamos Market i.e., Calamos Market and The Emerging go up and down completely randomly.
Pair Corralation between Calamos Market and The Emerging
Assuming the 90 days horizon Calamos Market Neutral is expected to generate 0.45 times more return on investment than The Emerging. However, Calamos Market Neutral is 2.22 times less risky than The Emerging. It trades about 0.06 of its potential returns per unit of risk. The Emerging Markets is currently generating about 0.02 per unit of risk. If you would invest 1,367 in Calamos Market Neutral on September 4, 2024 and sell it today you would earn a total of 140.00 from holding Calamos Market Neutral or generate 10.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Market Neutral vs. The Emerging Markets
Performance |
| Timeline |
| Calamos Market Neutral |
| Emerging Markets |
Calamos Market and The Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and The Emerging
The main advantage of trading using opposite Calamos Market and The Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, The 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 The Emerging will offset losses from the drop in The 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 |
| The Emerging vs. Vanguard Total Stock | The Emerging vs. Vanguard 500 Index | The Emerging vs. Vanguard Total Stock | The Emerging vs. Vanguard Total Stock |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |