Correlation Between Calamos Phineus and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both Calamos Phineus and Neuberger Berman 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 Phineus and Neuberger Berman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Phineus Longshort and Neuberger Berman Long, you can compare the effects of market volatilities on Calamos Phineus and Neuberger Berman 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 Phineus with a short position of Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Phineus and Neuberger Berman.
Diversification Opportunities for Calamos Phineus and Neuberger Berman
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Neuberger is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Phineus Longshort and Neuberger Berman Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Long and Calamos Phineus 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 Phineus Longshort are associated (or correlated) with Neuberger Berman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neuberger Berman Long has no effect on the direction of Calamos Phineus i.e., Calamos Phineus and Neuberger Berman go up and down completely randomly.
Pair Corralation between Calamos Phineus and Neuberger Berman
Assuming the 90 days horizon Calamos Phineus is expected to generate 1.09 times less return on investment than Neuberger Berman. In addition to that, Calamos Phineus is 1.4 times more volatile than Neuberger Berman Long. It trades about 0.17 of its total potential returns per unit of risk. Neuberger Berman Long is currently generating about 0.25 per unit of volatility. If you would invest 1,744 in Neuberger Berman Long on August 29, 2024 and sell it today you would earn a total of 29.00 from holding Neuberger Berman Long or generate 1.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Phineus Longshort vs. Neuberger Berman Long
Performance |
| Timeline |
| Calamos Phineus Longshort |
| Neuberger Berman Long |
Calamos Phineus and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Phineus and Neuberger Berman
The main advantage of trading using opposite Calamos Phineus and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Phineus position performs unexpectedly, Neuberger Berman 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 Neuberger Berman will offset losses from the drop in Neuberger Berman's long position.| Calamos Phineus vs. Neuberger Berman Long | Calamos Phineus vs. Neuberger Berman Long | Calamos Phineus vs. Pimco Rae Worldwide |
| Neuberger Berman vs. Absolute Convertible Arbitrage | Neuberger Berman vs. Allianzgi Convertible Income | Neuberger Berman vs. Advent Claymore Convertible | Neuberger Berman vs. Calamos Dynamic Convertible |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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