Correlation Between Calamos Market and Vivaldi Merger
Can any of the company-specific risk be diversified away by investing in both Calamos Market and Vivaldi Merger 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 Vivaldi Merger 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 Vivaldi Merger Arbitrage, you can compare the effects of market volatilities on Calamos Market and Vivaldi Merger 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 Vivaldi Merger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Vivaldi Merger.
Diversification Opportunities for Calamos Market and Vivaldi Merger
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and Vivaldi is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Vivaldi Merger Arbitrage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivaldi Merger Arbitrage 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 Vivaldi Merger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivaldi Merger Arbitrage has no effect on the direction of Calamos Market i.e., Calamos Market and Vivaldi Merger go up and down completely randomly.
Pair Corralation between Calamos Market and Vivaldi Merger
Assuming the 90 days horizon Calamos Market Neutral is expected to generate 1.93 times more return on investment than Vivaldi Merger. However, Calamos Market is 1.93 times more volatile than Vivaldi Merger Arbitrage. It trades about 0.29 of its potential returns per unit of risk. Vivaldi Merger Arbitrage is currently generating about 0.32 per unit of risk. If you would invest 1,496 in Calamos Market Neutral on September 5, 2024 and sell it today you would earn a total of 10.00 from holding Calamos Market Neutral or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Calamos Market Neutral vs. Vivaldi Merger Arbitrage
Performance |
| Timeline |
| Calamos Market Neutral |
| Vivaldi Merger Arbitrage |
Calamos Market and Vivaldi Merger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and Vivaldi Merger
The main advantage of trading using opposite Calamos Market and Vivaldi Merger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, Vivaldi Merger 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 Vivaldi Merger will offset losses from the drop in Vivaldi Merger's long position.| Calamos Market vs. Innealta Capital Sector | Calamos Market vs. Calamos Antetokounmpo Sustainable | Calamos Market vs. Calamos Opportunistic Value | Calamos Market vs. Calamos Opportunistic Value |
| Vivaldi Merger vs. Blackrock Science Technology | Vivaldi Merger vs. Mfs Technology Fund | Vivaldi Merger vs. Fidelity Advisor Technology | Vivaldi Merger vs. Technology Ultrasector Profund |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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