Correlation Between Calamos Market and Hussman Strategic
Can any of the company-specific risk be diversified away by investing in both Calamos Market and Hussman Strategic 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 Hussman Strategic 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 Hussman Strategic Growth, you can compare the effects of market volatilities on Calamos Market and Hussman Strategic 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 Hussman Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Hussman Strategic.
Diversification Opportunities for Calamos Market and Hussman Strategic
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Calamos and Hussman is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Hussman Strategic Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hussman Strategic Growth 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 Hussman Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hussman Strategic Growth has no effect on the direction of Calamos Market i.e., Calamos Market and Hussman Strategic go up and down completely randomly.
Pair Corralation between Calamos Market and Hussman Strategic
Assuming the 90 days horizon Calamos Market Neutral is expected to generate 0.41 times more return on investment than Hussman Strategic. However, Calamos Market Neutral is 2.41 times less risky than Hussman Strategic. It trades about 0.06 of its potential returns per unit of risk. Hussman Strategic Growth is currently generating about -0.06 per unit of risk. If you would invest 1,463 in Calamos Market Neutral on August 25, 2024 and sell it today you would earn a total of 59.00 from holding Calamos Market Neutral or generate 4.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Market Neutral vs. Hussman Strategic Growth
Performance |
| Timeline |
| Calamos Market Neutral |
| Hussman Strategic Growth |
Calamos Market and Hussman Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and Hussman Strategic
The main advantage of trading using opposite Calamos Market and Hussman Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, Hussman Strategic 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 Hussman Strategic will offset losses from the drop in Hussman Strategic's 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 |
| Hussman Strategic vs. Artisan High Income | Hussman Strategic vs. Pace Municipal Fixed | Hussman Strategic vs. T Rowe Price | Hussman Strategic vs. Pace Municipal Fixed |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |