Correlation Between Calamos Evolving and Calamos Market
Can any of the company-specific risk be diversified away by investing in both Calamos Evolving and Calamos Market 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 Evolving and Calamos Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Evolving World and Calamos Market Neutral, you can compare the effects of market volatilities on Calamos Evolving and Calamos Market 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 Evolving with a short position of Calamos Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Evolving and Calamos Market.
Diversification Opportunities for Calamos Evolving and Calamos Market
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Calamos is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Evolving World and Calamos Market Neutral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Market Neutral and Calamos Evolving 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 Evolving World are associated (or correlated) with Calamos Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Market Neutral has no effect on the direction of Calamos Evolving i.e., Calamos Evolving and Calamos Market go up and down completely randomly.
Pair Corralation between Calamos Evolving and Calamos Market
Assuming the 90 days horizon Calamos Evolving World is expected to generate 2.21 times more return on investment than Calamos Market. However, Calamos Evolving is 2.21 times more volatile than Calamos Market Neutral. It trades about 0.04 of its potential returns per unit of risk. Calamos Market Neutral is currently generating about 0.05 per unit of risk. If you would invest 1,668 in Calamos Evolving World on August 31, 2024 and sell it today you would earn a total of 260.00 from holding Calamos Evolving World or generate 15.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Evolving World vs. Calamos Market Neutral
Performance |
| Timeline |
| Calamos Evolving World |
| Calamos Market Neutral |
Calamos Evolving and Calamos Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Evolving and Calamos Market
The main advantage of trading using opposite Calamos Evolving and Calamos Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Evolving position performs unexpectedly, Calamos Market 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 Calamos Market will offset losses from the drop in Calamos Market's long position.| Calamos Evolving vs. Pear Tree Polaris | Calamos Evolving vs. Artisan High Income | Calamos Evolving vs. HUMANA INC | Calamos Evolving vs. Aquagold International |
| Calamos Market vs. Calamos Market Neutral | Calamos Market vs. Calamos Market Neutral | Calamos Market vs. Calamos Market Neutral | Calamos Market vs. Aqr Diversified Arbitrage |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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