Correlation Between Calamos Timpani and Vanguard Health
Can any of the company-specific risk be diversified away by investing in both Calamos Timpani and Vanguard Health 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 Vanguard Health 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 Vanguard Health Care, you can compare the effects of market volatilities on Calamos Timpani and Vanguard Health 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 Vanguard Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Timpani and Vanguard Health.
Diversification Opportunities for Calamos Timpani and Vanguard Health
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Calamos and Vanguard is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Timpani Smid and Vanguard Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Health Care 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 Vanguard Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Health Care has no effect on the direction of Calamos Timpani i.e., Calamos Timpani and Vanguard Health go up and down completely randomly.
Pair Corralation between Calamos Timpani and Vanguard Health
Assuming the 90 days horizon Calamos Timpani Smid is expected to generate 2.01 times more return on investment than Vanguard Health. However, Calamos Timpani is 2.01 times more volatile than Vanguard Health Care. It trades about 0.19 of its potential returns per unit of risk. Vanguard Health Care is currently generating about -0.24 per unit of risk. If you would invest 1,446 in Calamos Timpani Smid on September 13, 2024 and sell it today you would earn a total of 193.00 from holding Calamos Timpani Smid or generate 13.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Calamos Timpani Smid vs. Vanguard Health Care
Performance |
| Timeline |
| Calamos Timpani Smid |
| Vanguard Health Care |
Calamos Timpani and Vanguard Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Timpani and Vanguard Health
The main advantage of trading using opposite Calamos Timpani and Vanguard Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Timpani position performs unexpectedly, Vanguard Health 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 Vanguard Health will offset losses from the drop in Vanguard Health'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 |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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