Correlation Between Calamos Strategic and Wilmington Broad

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Can any of the company-specific risk be diversified away by investing in both Calamos Strategic and Wilmington Broad 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 Wilmington Broad 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 Wilmington Broad Market, you can compare the effects of market volatilities on Calamos Strategic and Wilmington Broad 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 Wilmington Broad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Strategic and Wilmington Broad.

Diversification Opportunities for Calamos Strategic and Wilmington Broad

-0.79
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Calamos and Wilmington is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Strategic Total and Wilmington Broad Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilmington Broad Market 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 Wilmington Broad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilmington Broad Market has no effect on the direction of Calamos Strategic i.e., Calamos Strategic and Wilmington Broad go up and down completely randomly.

Pair Corralation between Calamos Strategic and Wilmington Broad

Considering the 90-day investment horizon Calamos Strategic Total is expected to generate 2.47 times more return on investment than Wilmington Broad. However, Calamos Strategic is 2.47 times more volatile than Wilmington Broad Market. It trades about 0.12 of its potential returns per unit of risk. Wilmington Broad Market is currently generating about 0.03 per unit of risk. If you would invest  1,206  in Calamos Strategic Total on August 29, 2024 and sell it today you would earn a total of  600.00  from holding Calamos Strategic Total or generate 49.75% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Calamos Strategic Total  vs.  Wilmington Broad Market

 Performance 
       Timeline  
Calamos Strategic Total 

Risk-Adjusted Performance

13 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Strategic Total are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. Even with relatively inconsistent basic indicators, Calamos Strategic may actually be approaching a critical reversion point that can send shares even higher in December 2024.
Wilmington Broad Market 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Wilmington Broad Market has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong primary indicators, Wilmington Broad is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Calamos Strategic and Wilmington Broad Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Calamos Strategic and Wilmington Broad

The main advantage of trading using opposite Calamos Strategic and Wilmington Broad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Strategic position performs unexpectedly, Wilmington Broad 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 Wilmington Broad will offset losses from the drop in Wilmington Broad's long position.
The idea behind Calamos Strategic Total and Wilmington Broad Market 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.
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

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