Correlation Between Calamos Market and Calamos Total
Can any of the company-specific risk be diversified away by investing in both Calamos Market and Calamos Total 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 Market and Calamos Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Market Neutral and Calamos Total Return, you can compare the effects of market volatilities on Calamos Market and Calamos Total 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 Market with a short position of Calamos Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Calamos Total.
Diversification Opportunities for Calamos Market and Calamos Total
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Calamos and Calamos is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Calamos Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Total Return and Calamos Market 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 Market Neutral are associated (or correlated) with Calamos Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Total Return has no effect on the direction of Calamos Market i.e., Calamos Market and Calamos Total go up and down completely randomly.
Pair Corralation between Calamos Market and Calamos Total
Assuming the 90 days horizon Calamos Market Neutral is expected to generate 0.17 times more return on investment than Calamos Total. However, Calamos Market Neutral is 6.0 times less risky than Calamos Total. It trades about 0.46 of its potential returns per unit of risk. Calamos Total Return is currently generating about 0.04 per unit of risk. If you would invest 1,527 in Calamos Market Neutral on September 18, 2024 and sell it today you would earn a total of 7.00 from holding Calamos Market Neutral or generate 0.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Market Neutral vs. Calamos Total Return
Performance |
| Timeline |
| Calamos Market Neutral |
| Calamos Total Return |
Calamos Market and Calamos Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and Calamos Total
The main advantage of trading using opposite Calamos Market and Calamos Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, Calamos Total 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 Total will offset losses from the drop in Calamos Total's long position.| Calamos Market vs. Blackrock Short Term Inflat Protected | Calamos Market vs. Rbc Short Duration | Calamos Market vs. Old Westbury Short Term | Calamos Market vs. Cmg Ultra Short |
| Calamos Total vs. Calamos Antetokounmpo Sustainable | Calamos Total vs. Innealta Capital Sector | Calamos Total vs. Calamos Antetokounmpo Sustainable | Calamos Total vs. Calamos Antetokounmpo Sustainable |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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