Correlation Between Calamos Market and Pioneer Fundamental
Can any of the company-specific risk be diversified away by investing in both Calamos Market and Pioneer Fundamental 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 Pioneer Fundamental 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 Pioneer Fundamental Growth, you can compare the effects of market volatilities on Calamos Market and Pioneer Fundamental 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 Pioneer Fundamental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Pioneer Fundamental.
Diversification Opportunities for Calamos Market and Pioneer Fundamental
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Pioneer is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Pioneer Fundamental Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pioneer Fundamental 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 Pioneer Fundamental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pioneer Fundamental has no effect on the direction of Calamos Market i.e., Calamos Market and Pioneer Fundamental go up and down completely randomly.
Pair Corralation between Calamos Market and Pioneer Fundamental
Assuming the 90 days horizon Calamos Market Neutral is expected to generate 0.13 times more return on investment than Pioneer Fundamental. However, Calamos Market Neutral is 7.75 times less risky than Pioneer Fundamental. It trades about 0.24 of its potential returns per unit of risk. Pioneer Fundamental Growth is currently generating about 0.03 per unit of risk. If you would invest 1,450 in Calamos Market Neutral on September 3, 2024 and sell it today you would earn a total of 55.00 from holding Calamos Market Neutral or generate 3.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Market Neutral vs. Pioneer Fundamental Growth
Performance |
| Timeline |
| Calamos Market Neutral |
| Pioneer Fundamental |
Calamos Market and Pioneer Fundamental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and Pioneer Fundamental
The main advantage of trading using opposite Calamos Market and Pioneer Fundamental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, Pioneer Fundamental 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 Pioneer Fundamental will offset losses from the drop in Pioneer Fundamental'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 |
| Pioneer Fundamental vs. Mondrian Emerging Markets | Pioneer Fundamental vs. The Hartford Emerging | Pioneer Fundamental vs. Ep Emerging Markets | Pioneer Fundamental vs. Calamos Market Neutral |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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