Correlation Between Calamos Market and Rational Dividend
Can any of the company-specific risk be diversified away by investing in both Calamos Market and Rational Dividend 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 Rational Dividend 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 Rational Dividend Capture, you can compare the effects of market volatilities on Calamos Market and Rational Dividend 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 Rational Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Rational Dividend.
Diversification Opportunities for Calamos Market and Rational Dividend
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and Rational is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Rational Dividend Capture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rational Dividend Capture 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 Rational Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rational Dividend Capture has no effect on the direction of Calamos Market i.e., Calamos Market and Rational Dividend go up and down completely randomly.
Pair Corralation between Calamos Market and Rational Dividend
Assuming the 90 days horizon Calamos Market is expected to generate 3.35 times less return on investment than Rational Dividend. But when comparing it to its historical volatility, Calamos Market Neutral is 5.94 times less risky than Rational Dividend. It trades about 0.33 of its potential returns per unit of risk. Rational Dividend Capture is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 912.00 in Rational Dividend Capture on September 3, 2024 and sell it today you would earn a total of 65.00 from holding Rational Dividend Capture or generate 7.13% 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. Rational Dividend Capture
Performance |
| Timeline |
| Calamos Market Neutral |
| Rational Dividend Capture |
Calamos Market and Rational Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and Rational Dividend
The main advantage of trading using opposite Calamos Market and Rational Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, Rational Dividend 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 Rational Dividend will offset losses from the drop in Rational Dividend's long position.| Calamos Market vs. Calamos Market Neutral | Calamos Market vs. Absolute Convertible Arbitrage | Calamos Market vs. Aqr Diversified Arbitrage | Calamos Market vs. Palmer Square Ssi |
| Rational Dividend vs. Jpmorgan Equity Income | Rational Dividend vs. Jpmorgan Hedged Equity | Rational Dividend vs. Calamos Market Neutral | Rational Dividend vs. Jpmorgan Emerging Markets |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |