Correlation Between Calamos Timpani and Calamos Phineus
Can any of the company-specific risk be diversified away by investing in both Calamos Timpani and Calamos Phineus 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 Phineus 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 Phineus Longshort, you can compare the effects of market volatilities on Calamos Timpani and Calamos Phineus 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 Phineus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Timpani and Calamos Phineus.
Diversification Opportunities for Calamos Timpani and Calamos Phineus
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and Calamos is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Timpani Smid and Calamos Phineus Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Phineus Longshort 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 Phineus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Phineus Longshort has no effect on the direction of Calamos Timpani i.e., Calamos Timpani and Calamos Phineus go up and down completely randomly.
Pair Corralation between Calamos Timpani and Calamos Phineus
Assuming the 90 days horizon Calamos Timpani Smid is expected to under-perform the Calamos Phineus. In addition to that, Calamos Timpani is 5.33 times more volatile than Calamos Phineus Longshort. It trades about -0.16 of its total potential returns per unit of risk. Calamos Phineus Longshort is currently generating about -0.44 per unit of volatility. If you would invest 1,665 in Calamos Phineus Longshort on November 27, 2024 and sell it today you would lose (44.00) from holding Calamos Phineus Longshort or give up 2.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Timpani Smid vs. Calamos Phineus Longshort
Performance |
| Timeline |
| Calamos Timpani Smid |
| Calamos Phineus Longshort |
Calamos Timpani and Calamos Phineus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Timpani and Calamos Phineus
The main advantage of trading using opposite Calamos Timpani and Calamos Phineus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Timpani position performs unexpectedly, Calamos Phineus 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 Phineus will offset losses from the drop in Calamos Phineus' long position.| Calamos Timpani vs. Versatile Bond Portfolio | Calamos Timpani vs. Gmo High Yield | Calamos Timpani vs. Rbc Bluebay Emerging | Calamos Timpani vs. Ultra Short Fixed Income |
| Calamos Phineus vs. Calamos Phineus Longshort | Calamos Phineus vs. Calamos Market Neutral | Calamos Phineus vs. Calamos Phineus Longshort |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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