Correlation Between Calamos Timpani and Calamos Long/short
Can any of the company-specific risk be diversified away by investing in both Calamos Timpani and Calamos Long/short 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 Calamos Long/short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Timpani Small and Calamos Longshort Fund, you can compare the effects of market volatilities on Calamos Timpani and Calamos Long/short 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 Calamos Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Timpani and Calamos Long/short.
Diversification Opportunities for Calamos Timpani and Calamos Long/short
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Calamos is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Timpani Small and Calamos Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Long/short 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 Small are associated (or correlated) with Calamos Long/short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Long/short has no effect on the direction of Calamos Timpani i.e., Calamos Timpani and Calamos Long/short go up and down completely randomly.
Pair Corralation between Calamos Timpani and Calamos Long/short
Assuming the 90 days horizon Calamos Timpani Small is expected to generate 2.99 times more return on investment than Calamos Long/short. However, Calamos Timpani is 2.99 times more volatile than Calamos Longshort Fund. It trades about 0.39 of its potential returns per unit of risk. Calamos Longshort Fund is currently generating about -0.03 per unit of risk. If you would invest 3,453 in Calamos Timpani Small on September 1, 2024 and sell it today you would earn a total of 611.00 from holding Calamos Timpani Small or generate 17.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Timpani Small vs. Calamos Longshort Fund
Performance |
| Timeline |
| Calamos Timpani Small |
| Calamos Long/short |
Calamos Timpani and Calamos Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Timpani and Calamos Long/short
The main advantage of trading using opposite Calamos Timpani and Calamos Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Timpani position performs unexpectedly, Calamos Long/short 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 Calamos Long/short will offset losses from the drop in Calamos Long/short's long position.The idea behind Calamos Timpani Small and Calamos Longshort Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Calamos Long/short vs. Us Government Plus | Calamos Long/short vs. Inverse Government Long | Calamos Long/short vs. Franklin Adjustable Government | Calamos Long/short vs. Us Government Securities |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |