Correlation Between Calamos Timpani and Live Oak
Can any of the company-specific risk be diversified away by investing in both Calamos Timpani and Live Oak 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 Live Oak 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 Live Oak Health, you can compare the effects of market volatilities on Calamos Timpani and Live Oak 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 Live Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Timpani and Live Oak.
Diversification Opportunities for Calamos Timpani and Live Oak
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Live is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Timpani Smid and Live Oak Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Live Oak Health 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 Live Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Live Oak Health has no effect on the direction of Calamos Timpani i.e., Calamos Timpani and Live Oak go up and down completely randomly.
Pair Corralation between Calamos Timpani and Live Oak
Assuming the 90 days horizon Calamos Timpani Smid is expected to generate 1.8 times more return on investment than Live Oak. However, Calamos Timpani is 1.8 times more volatile than Live Oak Health. It trades about 0.06 of its potential returns per unit of risk. Live Oak Health is currently generating about -0.3 per unit of risk. If you would invest 1,609 in Calamos Timpani Smid on September 13, 2024 and sell it today you would earn a total of 30.00 from holding Calamos Timpani Smid or generate 1.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Calamos Timpani Smid vs. Live Oak Health
Performance |
| Timeline |
| Calamos Timpani Smid |
| Live Oak Health |
Calamos Timpani and Live Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Timpani and Live Oak
The main advantage of trading using opposite Calamos Timpani and Live Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Timpani position performs unexpectedly, Live Oak 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 Live Oak will offset losses from the drop in Live Oak's long position.| Calamos Timpani vs. Scout Small Cap | Calamos Timpani vs. Sp Smallcap 600 | Calamos Timpani vs. Franklin Small Cap | Calamos Timpani vs. Ab Small Cap |
| Live Oak vs. Black Oak Emerging | Live Oak vs. Pin Oak Equity | Live Oak vs. Red Oak Technology | Live Oak vs. White Oak Select |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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