Correlation Between Calamos Strategic and Vela Large
Can any of the company-specific risk be diversified away by investing in both Calamos Strategic and Vela Large 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 Vela Large 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 Vela Large Cap, you can compare the effects of market volatilities on Calamos Strategic and Vela Large 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 Vela Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Strategic and Vela Large.
Diversification Opportunities for Calamos Strategic and Vela Large
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and Vela is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Strategic Total and Vela Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vela Large Cap 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 Vela Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vela Large Cap has no effect on the direction of Calamos Strategic i.e., Calamos Strategic and Vela Large go up and down completely randomly.
Pair Corralation between Calamos Strategic and Vela Large
Considering the 90-day investment horizon Calamos Strategic Total is expected to generate 1.59 times more return on investment than Vela Large. However, Calamos Strategic is 1.59 times more volatile than Vela Large Cap. It trades about 0.09 of its potential returns per unit of risk. Vela Large Cap is currently generating about 0.09 per unit of risk. If you would invest 1,198 in Calamos Strategic Total on September 2, 2024 and sell it today you would earn a total of 616.00 from holding Calamos Strategic Total or generate 51.42% 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. Vela Large Cap
Performance |
| Timeline |
| Calamos Strategic Total |
| Vela Large Cap |
Calamos Strategic and Vela Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Strategic and Vela Large
The main advantage of trading using opposite Calamos Strategic and Vela Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Strategic position performs unexpectedly, Vela Large 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 Vela Large will offset losses from the drop in Vela Large's long position.| Calamos Strategic vs. Calamos Convertible Opportunities | Calamos Strategic vs. Calamos Dynamic Convertible | Calamos Strategic vs. Calamos Global Dynamic | Calamos Strategic vs. Calamos LongShort Equity |
| Vela Large vs. Vela International | Vela Large vs. Vela International | Vela Large vs. Vela Large Cap | Vela Large vs. Vela Small Cap |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Commodity Directory Find actively traded commodities issued by global exchanges |