Correlation Between Calamos Phineus and Locorr Hedged
Can any of the company-specific risk be diversified away by investing in both Calamos Phineus and Locorr Hedged 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 Locorr Hedged 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 Locorr Hedged Core, you can compare the effects of market volatilities on Calamos Phineus and Locorr Hedged 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 Locorr Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Phineus and Locorr Hedged.
Diversification Opportunities for Calamos Phineus and Locorr Hedged
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Calamos and Locorr is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Phineus Longshort and Locorr Hedged Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Locorr Hedged Core 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 Locorr Hedged. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Locorr Hedged Core has no effect on the direction of Calamos Phineus i.e., Calamos Phineus and Locorr Hedged go up and down completely randomly.
Pair Corralation between Calamos Phineus and Locorr Hedged
Assuming the 90 days horizon Calamos Phineus Longshort is expected to generate 2.03 times more return on investment than Locorr Hedged. However, Calamos Phineus is 2.03 times more volatile than Locorr Hedged Core. It trades about 0.07 of its potential returns per unit of risk. Locorr Hedged Core is currently generating about 0.11 per unit of risk. If you would invest 1,728 in Calamos Phineus Longshort on September 1, 2024 and sell it today you would earn a total of 10.00 from holding Calamos Phineus Longshort or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Calamos Phineus Longshort vs. Locorr Hedged Core
Performance |
| Timeline |
| Calamos Phineus Longshort |
| Locorr Hedged Core |
Calamos Phineus and Locorr Hedged Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Phineus and Locorr Hedged
The main advantage of trading using opposite Calamos Phineus and Locorr Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Phineus position performs unexpectedly, Locorr Hedged 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 Locorr Hedged will offset losses from the drop in Locorr Hedged's long position.The idea behind Calamos Phineus Longshort and Locorr Hedged Core pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Locorr Hedged vs. Vanguard 500 Index | Locorr Hedged vs. Ridgeworth Innovative Growth | Locorr Hedged vs. Gabelli Equity Trust | Locorr Hedged vs. Loomis Sayles International |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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