Correlation Between Calamos Timpani and Tortoise Energy
Can any of the company-specific risk be diversified away by investing in both Calamos Timpani and Tortoise Energy 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 Tortoise Energy 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 Tortoise Energy Independence, you can compare the effects of market volatilities on Calamos Timpani and Tortoise Energy 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 Tortoise Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Timpani and Tortoise Energy.
Diversification Opportunities for Calamos Timpani and Tortoise Energy
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and Tortoise is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Timpani Smid and Tortoise Energy Independence in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tortoise Energy Inde 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 Tortoise Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tortoise Energy Inde has no effect on the direction of Calamos Timpani i.e., Calamos Timpani and Tortoise Energy go up and down completely randomly.
Pair Corralation between Calamos Timpani and Tortoise Energy
Assuming the 90 days horizon Calamos Timpani Smid is expected to generate 1.43 times more return on investment than Tortoise Energy. However, Calamos Timpani is 1.43 times more volatile than Tortoise Energy Independence. It trades about 0.41 of its potential returns per unit of risk. Tortoise Energy Independence is currently generating about 0.37 per unit of risk. If you would invest 1,438 in Calamos Timpani Smid on September 4, 2024 and sell it today you would earn a total of 251.00 from holding Calamos Timpani Smid or generate 17.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Calamos Timpani Smid vs. Tortoise Energy Independence
Performance |
| Timeline |
| Calamos Timpani Smid |
| Tortoise Energy Inde |
Calamos Timpani and Tortoise Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Timpani and Tortoise Energy
The main advantage of trading using opposite Calamos Timpani and Tortoise Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Timpani position performs unexpectedly, Tortoise Energy 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 Tortoise Energy will offset losses from the drop in Tortoise Energy's long position.The idea behind Calamos Timpani Smid and Tortoise Energy Independence 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.
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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