Correlation Between Calamos Timpani and Scout Small
Can any of the company-specific risk be diversified away by investing in both Calamos Timpani and Scout Small 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 Scout Small 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 Scout Small Cap, you can compare the effects of market volatilities on Calamos Timpani and Scout Small 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 Scout Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Timpani and Scout Small.
Diversification Opportunities for Calamos Timpani and Scout Small
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Calamos and Scout is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Timpani Smid and Scout Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scout Small Cap 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 Scout Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scout Small Cap has no effect on the direction of Calamos Timpani i.e., Calamos Timpani and Scout Small go up and down completely randomly.
Pair Corralation between Calamos Timpani and Scout Small
Assuming the 90 days horizon Calamos Timpani Smid is expected to generate 1.02 times more return on investment than Scout Small. However, Calamos Timpani is 1.02 times more volatile than Scout Small Cap. It trades about 0.07 of its potential returns per unit of risk. Scout Small Cap is currently generating about 0.02 per unit of risk. If you would invest 908.00 in Calamos Timpani Smid on December 4, 2024 and sell it today you would earn a total of 451.00 from holding Calamos Timpani Smid or generate 49.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Calamos Timpani Smid vs. Scout Small Cap
Performance |
| Timeline |
| Calamos Timpani Smid |
| Scout Small Cap |
Calamos Timpani and Scout Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Timpani and Scout Small
The main advantage of trading using opposite Calamos Timpani and Scout Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Timpani position performs unexpectedly, Scout Small 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 Scout Small will offset losses from the drop in Scout Small's long position.| Calamos Timpani vs. Oklahoma College Savings | Calamos Timpani vs. The Hartford International | Calamos Timpani vs. Rational Defensive Growth | Calamos Timpani vs. The Hartford Growth |
| Scout Small vs. Barings Active Short | Scout Small vs. Rbc Short Duration | Scout Small vs. Siit Ultra Short | Scout Small vs. Alpine Ultra Short |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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