Correlation Between Calamos Evolving and Live Oak
Can any of the company-specific risk be diversified away by investing in both Calamos Evolving and Live Oak 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 Live Oak 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 Live Oak Health, you can compare the effects of market volatilities on Calamos Evolving and Live Oak 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 Live Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Evolving and Live Oak.
Diversification Opportunities for Calamos Evolving and Live Oak
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Live is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Evolving World and Live Oak Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Live Oak Health 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 Live Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Live Oak Health has no effect on the direction of Calamos Evolving i.e., Calamos Evolving and Live Oak go up and down completely randomly.
Pair Corralation between Calamos Evolving and Live Oak
Assuming the 90 days horizon Calamos Evolving World is expected to under-perform the Live Oak. In addition to that, Calamos Evolving is 1.62 times more volatile than Live Oak Health. It trades about -0.04 of its total potential returns per unit of risk. Live Oak Health is currently generating about 0.37 per unit of volatility. If you would invest 2,010 in Live Oak Health on November 3, 2024 and sell it today you would earn a total of 119.00 from holding Live Oak Health or generate 5.92% 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. Live Oak Health
Performance |
| Timeline |
| Calamos Evolving World |
| Live Oak Health |
Calamos Evolving and Live Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Evolving and Live Oak
The main advantage of trading using opposite Calamos Evolving and Live Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Evolving position performs unexpectedly, Live Oak 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 Live Oak will offset losses from the drop in Live Oak's long position.| Calamos Evolving vs. Dunham High Yield | Calamos Evolving vs. City National Rochdale | Calamos Evolving vs. Simt High Yield | Calamos Evolving vs. Msift High Yield |
| Live Oak vs. Black Oak Emerging | Live Oak vs. Pin Oak Equity | Live Oak vs. Red Oak Technology | Live Oak vs. White Oak Select |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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