Correlation Between Calamos Market and The Merger
Can any of the company-specific risk be diversified away by investing in both Calamos Market and The Merger 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 The Merger 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 The Merger Fund, you can compare the effects of market volatilities on Calamos Market and The Merger 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 The Merger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and The Merger.
Diversification Opportunities for Calamos Market and The Merger
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and The is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and The Merger Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Merger Fund 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 The Merger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Merger Fund has no effect on the direction of Calamos Market i.e., Calamos Market and The Merger go up and down completely randomly.
Pair Corralation between Calamos Market and The Merger
Assuming the 90 days horizon Calamos Market Neutral is expected to generate 0.5 times more return on investment than The Merger. However, Calamos Market Neutral is 2.01 times less risky than The Merger. It trades about 0.23 of its potential returns per unit of risk. The Merger Fund is currently generating about -0.02 per unit of risk. If you would invest 1,515 in Calamos Market Neutral on August 29, 2024 and sell it today you would earn a total of 8.00 from holding Calamos Market Neutral or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Market Neutral vs. The Merger Fund
Performance |
| Timeline |
| Calamos Market Neutral |
| Merger Fund |
Calamos Market and The Merger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and The Merger
The main advantage of trading using opposite Calamos Market and The Merger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, The Merger 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 The Merger will offset losses from the drop in The Merger'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 |
| The Merger vs. Strategic Advisers International | The Merger vs. Strategic Advisers Income | The Merger vs. Strategic Advisers E | The Merger vs. Strategic Advisers Emerging |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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