Correlation Between Capri Holdings and Calamos High
Can any of the company-specific risk be diversified away by investing in both Capri Holdings and Calamos High 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 Capri Holdings and Calamos High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capri Holdings and Calamos High Income, you can compare the effects of market volatilities on Capri Holdings and Calamos High 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 Capri Holdings with a short position of Calamos High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capri Holdings and Calamos High.
Diversification Opportunities for Capri Holdings and Calamos High
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Capri and Calamos is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Capri Holdings and Calamos High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos High Income and Capri Holdings 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 Capri Holdings are associated (or correlated) with Calamos High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos High Income has no effect on the direction of Capri Holdings i.e., Capri Holdings and Calamos High go up and down completely randomly.
Pair Corralation between Capri Holdings and Calamos High
Given the investment horizon of 90 days Capri Holdings is expected to under-perform the Calamos High. In addition to that, Capri Holdings is 20.96 times more volatile than Calamos High Income. It trades about -0.04 of its total potential returns per unit of risk. Calamos High Income is currently generating about 0.16 per unit of volatility. If you would invest 774.00 in Calamos High Income on November 27, 2024 and sell it today you would earn a total of 10.00 from holding Calamos High Income or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capri Holdings vs. Calamos High Income
Performance |
| Timeline |
| Capri Holdings |
| Calamos High Income |
Capri Holdings and Calamos High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capri Holdings and Calamos High
The main advantage of trading using opposite Capri Holdings and Calamos High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capri Holdings position performs unexpectedly, Calamos High 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 Calamos High will offset losses from the drop in Calamos High's long position.| Capri Holdings vs. Movado Group | Capri Holdings vs. Signet Jewelers | Capri Holdings vs. Lanvin Group Holdings | Capri Holdings vs. TheRealReal |
| Calamos High vs. Barings Active Short | Calamos High vs. T Rowe Price | Calamos High vs. Ms Global Fixed | Calamos High vs. Ultra Short Fixed Income |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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