Correlation Between Calamos Market and Retirement Living
Can any of the company-specific risk be diversified away by investing in both Calamos Market and Retirement Living 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 Retirement Living 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 Retirement Living Through, you can compare the effects of market volatilities on Calamos Market and Retirement Living 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 Retirement Living. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Retirement Living.
Diversification Opportunities for Calamos Market and Retirement Living
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and Retirement is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Retirement Living Through in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retirement Living Through 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 Retirement Living. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retirement Living Through has no effect on the direction of Calamos Market i.e., Calamos Market and Retirement Living go up and down completely randomly.
Pair Corralation between Calamos Market and Retirement Living
Assuming the 90 days horizon Calamos Market Neutral is expected to generate 0.21 times more return on investment than Retirement Living. However, Calamos Market Neutral is 4.73 times less risky than Retirement Living. It trades about 0.17 of its potential returns per unit of risk. Retirement Living Through is currently generating about 0.02 per unit of risk. If you would invest 1,502 in Calamos Market Neutral on September 12, 2024 and sell it today you would earn a total of 5.00 from holding Calamos Market Neutral or generate 0.33% 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. Retirement Living Through
Performance |
| Timeline |
| Calamos Market Neutral |
| Retirement Living Through |
Calamos Market and Retirement Living Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and Retirement Living
The main advantage of trading using opposite Calamos Market and Retirement Living positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, Retirement Living 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 Retirement Living will offset losses from the drop in Retirement Living'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 |
| Retirement Living vs. Morningstar Aggressive Growth | Retirement Living vs. Metropolitan West High | Retirement Living vs. Intal High Relative | Retirement Living 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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