Correlation Between Calamos Market and Inverse High
Can any of the company-specific risk be diversified away by investing in both Calamos Market and Inverse High 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 Inverse High 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 Inverse High Yield, you can compare the effects of market volatilities on Calamos Market and Inverse High 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 Inverse High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Inverse High.
Diversification Opportunities for Calamos Market and Inverse High
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and Inverse is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Inverse High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inverse High Yield 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 Inverse High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inverse High Yield has no effect on the direction of Calamos Market i.e., Calamos Market and Inverse High go up and down completely randomly.
Pair Corralation between Calamos Market and Inverse High
Assuming the 90 days horizon Calamos Market Neutral is expected to generate 0.36 times more return on investment than Inverse High. However, Calamos Market Neutral is 2.76 times less risky than Inverse High. It trades about 0.32 of its potential returns per unit of risk. Inverse High Yield is currently generating about 0.03 per unit of risk. If you would invest 1,480 in Calamos Market Neutral on September 12, 2024 and sell it today you would earn a total of 29.00 from holding Calamos Market Neutral or generate 1.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Calamos Market Neutral vs. Inverse High Yield
Performance |
| Timeline |
| Calamos Market Neutral |
| Inverse High Yield |
Calamos Market and Inverse High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and Inverse High
The main advantage of trading using opposite Calamos Market and Inverse High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, Inverse High 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 Inverse High will offset losses from the drop in Inverse High's long position.| Calamos Market vs. Amg River Road | Calamos Market vs. Great West Loomis Sayles | Calamos Market vs. Ab Small Cap | Calamos Market vs. Fpa Queens Road |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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