Correlation Between Calamos Market and Boston Partners
Can any of the company-specific risk be diversified away by investing in both Calamos Market and Boston Partners 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 Boston Partners 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 Boston Partners Longshort, you can compare the effects of market volatilities on Calamos Market and Boston Partners 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 Boston Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Boston Partners.
Diversification Opportunities for Calamos Market and Boston Partners
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Boston is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Boston Partners Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Partners Longshort 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 Boston Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Partners Longshort has no effect on the direction of Calamos Market i.e., Calamos Market and Boston Partners go up and down completely randomly.
Pair Corralation between Calamos Market and Boston Partners
Assuming the 90 days horizon Calamos Market is expected to generate 1.19 times less return on investment than Boston Partners. But when comparing it to its historical volatility, Calamos Market Neutral is 4.7 times less risky than Boston Partners. It trades about 0.12 of its potential returns per unit of risk. Boston Partners Longshort is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,386 in Boston Partners Longshort on September 14, 2024 and sell it today you would earn a total of 174.00 from holding Boston Partners Longshort or generate 12.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Market Neutral vs. Boston Partners Longshort
Performance |
| Timeline |
| Calamos Market Neutral |
| Boston Partners Longshort |
Calamos Market and Boston Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and Boston Partners
The main advantage of trading using opposite Calamos Market and Boston Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, Boston Partners 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 Boston Partners will offset losses from the drop in Boston Partners' long position.| Calamos Market vs. The Arbitrage Fund | Calamos Market vs. The Merger Fund | Calamos Market vs. Gateway Fund Class | Calamos Market vs. Diamond Hill Long Short |
| Boston Partners vs. Blackrock Midcap Index | Boston Partners vs. The Arbitrage Fund | Boston Partners vs. Calamos Market Neutral | Boston Partners vs. Diamond Hill Long Short |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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