Correlation Between Aam Select and Calamos Hedged
Can any of the company-specific risk be diversified away by investing in both Aam Select and Calamos 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 Aam Select and Calamos Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aam Select Income and Calamos Hedged Equity, you can compare the effects of market volatilities on Aam Select and Calamos 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 Aam Select with a short position of Calamos Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aam Select and Calamos Hedged.
Diversification Opportunities for Aam Select and Calamos Hedged
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aam and Calamos is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Aam Select Income and Calamos Hedged Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Hedged Equity and Aam Select 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 Aam Select Income are associated (or correlated) with Calamos Hedged. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Hedged Equity has no effect on the direction of Aam Select i.e., Aam Select and Calamos Hedged go up and down completely randomly.
Pair Corralation between Aam Select and Calamos Hedged
Assuming the 90 days horizon Aam Select is expected to generate 3.11 times less return on investment than Calamos Hedged. But when comparing it to its historical volatility, Aam Select Income is 1.11 times less risky than Calamos Hedged. It trades about 0.12 of its potential returns per unit of risk. Calamos Hedged Equity is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 1,645 in Calamos Hedged Equity on September 4, 2024 and sell it today you would earn a total of 51.00 from holding Calamos Hedged Equity or generate 3.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aam Select Income vs. Calamos Hedged Equity
Performance |
| Timeline |
| Aam Select Income |
| Calamos Hedged Equity |
Aam Select and Calamos Hedged Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aam Select and Calamos Hedged
The main advantage of trading using opposite Aam Select and Calamos Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aam Select position performs unexpectedly, Calamos 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 Calamos Hedged will offset losses from the drop in Calamos Hedged's long position.| Aam Select vs. Dreyfusstandish Global Fixed | Aam Select vs. Ab Impact Municipal | Aam Select vs. T Rowe Price | Aam Select vs. Multisector Bond Sma |
| Calamos Hedged vs. Calamos Antetokounmpo Sustainable | Calamos Hedged vs. Innealta Capital Sector | Calamos Hedged vs. Calamos Antetokounmpo Sustainable | Calamos Hedged vs. Calamos Antetokounmpo Sustainable |
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 Stocks Directory module to find actively traded stocks across global markets.
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