Correlation Between Calamos Evolving and Ab Equity
Can any of the company-specific risk be diversified away by investing in both Calamos Evolving and Ab Equity 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 Ab Equity 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 Ab Equity Income, you can compare the effects of market volatilities on Calamos Evolving and Ab Equity 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 Ab Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Evolving and Ab Equity.
Diversification Opportunities for Calamos Evolving and Ab Equity
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calamos and AUIAX is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Evolving World and Ab Equity Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Equity Income 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 Ab Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Equity Income has no effect on the direction of Calamos Evolving i.e., Calamos Evolving and Ab Equity go up and down completely randomly.
Pair Corralation between Calamos Evolving and Ab Equity
Assuming the 90 days horizon Calamos Evolving World is expected to under-perform the Ab Equity. In addition to that, Calamos Evolving is 1.29 times more volatile than Ab Equity Income. It trades about -0.11 of its total potential returns per unit of risk. Ab Equity Income is currently generating about 0.24 per unit of volatility. If you would invest 3,251 in Ab Equity Income on October 24, 2024 and sell it today you would earn a total of 104.00 from holding Ab Equity Income or generate 3.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Evolving World vs. Ab Equity Income
Performance |
| Timeline |
| Calamos Evolving World |
| Ab Equity Income |
Calamos Evolving and Ab Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Evolving and Ab Equity
The main advantage of trading using opposite Calamos Evolving and Ab Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Evolving position performs unexpectedly, Ab Equity 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 Ab Equity will offset losses from the drop in Ab Equity's long position.| Calamos Evolving vs. Live Oak Health | Calamos Evolving vs. Vanguard Health Care | Calamos Evolving vs. Hartford Healthcare Hls | Calamos Evolving vs. Highland Longshort Healthcare |
| Ab Equity vs. Alpine Ultra Short | Ab Equity vs. Intermediate Term Tax Free Bond | Ab Equity vs. Inverse Government Long | Ab Equity vs. Vanguard Short Term Government |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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