Correlation Between Calamos Short-term and Highland Small-cap
Can any of the company-specific risk be diversified away by investing in both Calamos Short-term and Highland Small-cap 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 Short-term and Highland Small-cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Short Term Bond and Highland Small Cap Equity, you can compare the effects of market volatilities on Calamos Short-term and Highland Small-cap 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 Short-term with a short position of Highland Small-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Short-term and Highland Small-cap.
Diversification Opportunities for Calamos Short-term and Highland Small-cap
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Highland is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Short Term Bond and Highland Small Cap Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highland Small Cap and Calamos Short-term 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 Short Term Bond are associated (or correlated) with Highland Small-cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highland Small Cap has no effect on the direction of Calamos Short-term i.e., Calamos Short-term and Highland Small-cap go up and down completely randomly.
Pair Corralation between Calamos Short-term and Highland Small-cap
Assuming the 90 days horizon Calamos Short-term is expected to generate 14.84 times less return on investment than Highland Small-cap. But when comparing it to its historical volatility, Calamos Short Term Bond is 6.13 times less risky than Highland Small-cap. It trades about 0.1 of its potential returns per unit of risk. Highland Small Cap Equity is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 673.00 in Highland Small Cap Equity on September 3, 2024 and sell it today you would earn a total of 21.00 from holding Highland Small Cap Equity or generate 3.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Short Term Bond vs. Highland Small Cap Equity
Performance |
| Timeline |
| Calamos Short Term |
| Highland Small Cap |
Calamos Short-term and Highland Small-cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Short-term and Highland Small-cap
The main advantage of trading using opposite Calamos Short-term and Highland Small-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Short-term position performs unexpectedly, Highland Small-cap 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 Highland Small-cap will offset losses from the drop in Highland Small-cap's long position.| Calamos Short-term vs. Goldman Sachs Clean | Calamos Short-term vs. Vy Goldman Sachs | Calamos Short-term vs. Franklin Gold Precious | Calamos Short-term vs. Gabelli Gold Fund |
| Highland Small-cap vs. Transamerica Asset Allocation | Highland Small-cap vs. T Rowe Price | Highland Small-cap vs. Virtus Dfa 2040 | Highland Small-cap vs. Hood River New |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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