Correlation Between Calamos Timpani and Multimanager Lifestyle
Can any of the company-specific risk be diversified away by investing in both Calamos Timpani and Multimanager Lifestyle 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 Multimanager Lifestyle 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 Multimanager Lifestyle Aggressive, you can compare the effects of market volatilities on Calamos Timpani and Multimanager Lifestyle 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 Multimanager Lifestyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Timpani and Multimanager Lifestyle.
Diversification Opportunities for Calamos Timpani and Multimanager Lifestyle
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and MULTIMANAGER is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Timpani Small and Multimanager Lifestyle Aggress in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multimanager Lifestyle 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 Multimanager Lifestyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multimanager Lifestyle has no effect on the direction of Calamos Timpani i.e., Calamos Timpani and Multimanager Lifestyle go up and down completely randomly.
Pair Corralation between Calamos Timpani and Multimanager Lifestyle
Assuming the 90 days horizon Calamos Timpani Small is expected to generate 2.09 times more return on investment than Multimanager Lifestyle. However, Calamos Timpani is 2.09 times more volatile than Multimanager Lifestyle Aggressive. It trades about 0.14 of its potential returns per unit of risk. Multimanager Lifestyle Aggressive is currently generating about 0.1 per unit of risk. If you would invest 3,093 in Calamos Timpani Small on September 5, 2024 and sell it today you would earn a total of 977.00 from holding Calamos Timpani Small or generate 31.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.2% |
| Values | Daily Returns |
Calamos Timpani Small vs. Multimanager Lifestyle Aggress
Performance |
| Timeline |
| Calamos Timpani Small |
| Multimanager Lifestyle |
Calamos Timpani and Multimanager Lifestyle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Timpani and Multimanager Lifestyle
The main advantage of trading using opposite Calamos Timpani and Multimanager Lifestyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Timpani position performs unexpectedly, Multimanager Lifestyle 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 Multimanager Lifestyle will offset losses from the drop in Multimanager Lifestyle's long position.| Calamos Timpani vs. Multimanager Lifestyle Aggressive | Calamos Timpani vs. Ab Global Risk | Calamos Timpani vs. Pace High Yield | Calamos Timpani vs. Goldman Sachs High |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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