Correlation Between Calamos International and Strategic Advisers
Can any of the company-specific risk be diversified away by investing in both Calamos International and Strategic Advisers 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 International and Strategic Advisers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos International Small and Strategic Advisers Income, you can compare the effects of market volatilities on Calamos International and Strategic Advisers 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 International with a short position of Strategic Advisers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos International and Strategic Advisers.
Diversification Opportunities for Calamos International and Strategic Advisers
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calamos and Strategic is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Calamos International Small and Strategic Advisers Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Advisers Income and Calamos International 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 International Small are associated (or correlated) with Strategic Advisers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Advisers Income has no effect on the direction of Calamos International i.e., Calamos International and Strategic Advisers go up and down completely randomly.
Pair Corralation between Calamos International and Strategic Advisers
Assuming the 90 days horizon Calamos International is expected to generate 2.52 times less return on investment than Strategic Advisers. In addition to that, Calamos International is 4.51 times more volatile than Strategic Advisers Income. It trades about 0.02 of its total potential returns per unit of risk. Strategic Advisers Income is currently generating about 0.27 per unit of volatility. If you would invest 829.00 in Strategic Advisers Income on November 3, 2024 and sell it today you would earn a total of 54.00 from holding Strategic Advisers Income or generate 6.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos International Small vs. Strategic Advisers Income
Performance |
| Timeline |
| Calamos International |
| Strategic Advisers Income |
Calamos International and Strategic Advisers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos International and Strategic Advisers
The main advantage of trading using opposite Calamos International and Strategic Advisers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos International position performs unexpectedly, Strategic Advisers 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 Strategic Advisers will offset losses from the drop in Strategic Advisers' long position.The idea behind Calamos International Small and Strategic Advisers Income 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.
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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