Correlation Between Calamos Timpani and Calamos International
Can any of the company-specific risk be diversified away by investing in both Calamos Timpani and Calamos International 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 International 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 Calamos International Small, you can compare the effects of market volatilities on Calamos Timpani and Calamos International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Timpani and Calamos International.
Diversification Opportunities for Calamos Timpani and Calamos International
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Calamos and Calamos is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Timpani Smid and Calamos International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos International 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 Calamos International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos International has no effect on the direction of Calamos Timpani i.e., Calamos Timpani and Calamos International go up and down completely randomly.
Pair Corralation between Calamos Timpani and Calamos International
Assuming the 90 days horizon Calamos Timpani Smid is expected to generate 1.53 times more return on investment than Calamos International. However, Calamos Timpani is 1.53 times more volatile than Calamos International Small. It trades about 0.16 of its potential returns per unit of risk. Calamos International Small is currently generating about 0.1 per unit of risk. If you would invest 954.00 in Calamos Timpani Smid on September 1, 2024 and sell it today you would earn a total of 743.00 from holding Calamos Timpani Smid or generate 77.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Timpani Smid vs. Calamos International Small
Performance |
| Timeline |
| Calamos Timpani Smid |
| Calamos International |
Calamos Timpani and Calamos International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Timpani and Calamos International
The main advantage of trading using opposite Calamos Timpani and Calamos International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Timpani position performs unexpectedly, Calamos International 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 International will offset losses from the drop in Calamos International's long position.| Calamos Timpani vs. Absolute Convertible Arbitrage | Calamos Timpani vs. Columbia Vertible Securities | Calamos Timpani vs. Advent Claymore Convertible | Calamos Timpani vs. Fidelity Sai Convertible |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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