Correlation Between Calamos Timpani and Guidepath(r) Managed
Can any of the company-specific risk be diversified away by investing in both Calamos Timpani and Guidepath(r) Managed 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 Timpani and Guidepath(r) Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Timpani Smid and Guidepath Managed Futures, you can compare the effects of market volatilities on Calamos Timpani and Guidepath(r) Managed 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 Timpani with a short position of Guidepath(r) Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Timpani and Guidepath(r) Managed.
Diversification Opportunities for Calamos Timpani and Guidepath(r) Managed
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Guidepath(r) is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Timpani Smid and Guidepath Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidepath Managed Futures and Calamos Timpani 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 Timpani Smid are associated (or correlated) with Guidepath(r) Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidepath Managed Futures has no effect on the direction of Calamos Timpani i.e., Calamos Timpani and Guidepath(r) Managed go up and down completely randomly.
Pair Corralation between Calamos Timpani and Guidepath(r) Managed
Assuming the 90 days horizon Calamos Timpani Smid is expected to generate 1.39 times more return on investment than Guidepath(r) Managed. However, Calamos Timpani is 1.39 times more volatile than Guidepath Managed Futures. It trades about 0.08 of its potential returns per unit of risk. Guidepath Managed Futures is currently generating about -0.05 per unit of risk. If you would invest 992.00 in Calamos Timpani Smid on September 4, 2024 and sell it today you would earn a total of 671.00 from holding Calamos Timpani Smid or generate 67.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Timpani Smid vs. Guidepath Managed Futures
Performance |
| Timeline |
| Calamos Timpani Smid |
| Guidepath Managed Futures |
Calamos Timpani and Guidepath(r) Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Timpani and Guidepath(r) Managed
The main advantage of trading using opposite Calamos Timpani and Guidepath(r) Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Timpani position performs unexpectedly, Guidepath(r) Managed 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 Guidepath(r) Managed will offset losses from the drop in Guidepath(r) Managed's long position.| Calamos Timpani vs. Dreyfus Technology Growth | Calamos Timpani vs. Technology Ultrasector Profund | Calamos Timpani vs. Allianzgi Technology Fund | Calamos Timpani vs. Dreyfus Technology Growth |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |