Correlation Between Calamos Strategic and Emerald Insights
Can any of the company-specific risk be diversified away by investing in both Calamos Strategic and Emerald Insights 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 Strategic and Emerald Insights into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Strategic Total and Emerald Insights Fund, you can compare the effects of market volatilities on Calamos Strategic and Emerald Insights 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 Strategic with a short position of Emerald Insights. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Strategic and Emerald Insights.
Diversification Opportunities for Calamos Strategic and Emerald Insights
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and Emerald is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Strategic Total and Emerald Insights Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerald Insights and Calamos Strategic 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 Strategic Total are associated (or correlated) with Emerald Insights. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerald Insights has no effect on the direction of Calamos Strategic i.e., Calamos Strategic and Emerald Insights go up and down completely randomly.
Pair Corralation between Calamos Strategic and Emerald Insights
Considering the 90-day investment horizon Calamos Strategic Total is expected to generate 0.72 times more return on investment than Emerald Insights. However, Calamos Strategic Total is 1.38 times less risky than Emerald Insights. It trades about 0.14 of its potential returns per unit of risk. Emerald Insights Fund is currently generating about 0.09 per unit of risk. If you would invest 1,398 in Calamos Strategic Total on August 25, 2024 and sell it today you would earn a total of 403.00 from holding Calamos Strategic Total or generate 28.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Strategic Total vs. Emerald Insights Fund
Performance |
| Timeline |
| Calamos Strategic Total |
| Emerald Insights |
Calamos Strategic and Emerald Insights Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Strategic and Emerald Insights
The main advantage of trading using opposite Calamos Strategic and Emerald Insights positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Strategic position performs unexpectedly, Emerald Insights 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 Emerald Insights will offset losses from the drop in Emerald Insights' long position.| Calamos Strategic vs. Allspring Income Opportunities | Calamos Strategic vs. Allspring Global Dividend | Calamos Strategic vs. Blackstone Gso Senior | Calamos Strategic vs. John Hancock Preferred |
| Emerald Insights vs. Emerald Banking And | Emerald Insights vs. Emerald Growth Fund | Emerald Insights vs. Emerald Growth Fund | Emerald Insights vs. Emerald Insights Fund |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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