Correlation Between Calamos Phineus and Dreyfus Municipal
Can any of the company-specific risk be diversified away by investing in both Calamos Phineus and Dreyfus Municipal 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 Dreyfus Municipal 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 Dreyfus Municipal Bond, you can compare the effects of market volatilities on Calamos Phineus and Dreyfus Municipal 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 Dreyfus Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Phineus and Dreyfus Municipal.
Diversification Opportunities for Calamos Phineus and Dreyfus Municipal
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Dreyfus is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Phineus Longshort and Dreyfus Municipal Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Municipal Bond 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 Dreyfus Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Municipal Bond has no effect on the direction of Calamos Phineus i.e., Calamos Phineus and Dreyfus Municipal go up and down completely randomly.
Pair Corralation between Calamos Phineus and Dreyfus Municipal
Assuming the 90 days horizon Calamos Phineus Longshort is expected to generate 0.67 times more return on investment than Dreyfus Municipal. However, Calamos Phineus Longshort is 1.49 times less risky than Dreyfus Municipal. It trades about 0.1 of its potential returns per unit of risk. Dreyfus Municipal Bond is currently generating about -0.04 per unit of risk. If you would invest 1,710 in Calamos Phineus Longshort on August 29, 2024 and sell it today you would earn a total of 26.00 from holding Calamos Phineus Longshort or generate 1.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Phineus Longshort vs. Dreyfus Municipal Bond
Performance |
| Timeline |
| Calamos Phineus Longshort |
| Dreyfus Municipal Bond |
Calamos Phineus and Dreyfus Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Phineus and Dreyfus Municipal
The main advantage of trading using opposite Calamos Phineus and Dreyfus Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Phineus position performs unexpectedly, Dreyfus Municipal 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 Dreyfus Municipal will offset losses from the drop in Dreyfus Municipal's long position.| Calamos Phineus vs. Neuberger Berman Long | Calamos Phineus vs. Neuberger Berman Long | Calamos Phineus vs. Pimco Rae Worldwide |
| Dreyfus Municipal vs. Vanguard Total Stock | Dreyfus Municipal vs. Vanguard 500 Index | Dreyfus Municipal vs. Vanguard Total Stock | Dreyfus Municipal vs. Vanguard Total Stock |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |