Correlation Between Calamos Market and American Beacon
Can any of the company-specific risk be diversified away by investing in both Calamos Market and American Beacon 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 American Beacon 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 American Beacon Ssi, you can compare the effects of market volatilities on Calamos Market and American Beacon 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 American Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and American Beacon.
Diversification Opportunities for Calamos Market and American Beacon
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and American is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and American Beacon Ssi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Ssi 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 American Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Beacon Ssi has no effect on the direction of Calamos Market i.e., Calamos Market and American Beacon go up and down completely randomly.
Pair Corralation between Calamos Market and American Beacon
Assuming the 90 days horizon Calamos Market is expected to generate 1.93 times less return on investment than American Beacon. In addition to that, Calamos Market is 2.4 times more volatile than American Beacon Ssi. It trades about 0.09 of its total potential returns per unit of risk. American Beacon Ssi is currently generating about 0.4 per unit of volatility. If you would invest 875.00 in American Beacon Ssi on August 31, 2024 and sell it today you would earn a total of 127.00 from holding American Beacon Ssi or generate 14.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.73% |
| Values | Daily Returns |
Calamos Market Neutral vs. American Beacon Ssi
Performance |
| Timeline |
| Calamos Market Neutral |
| American Beacon Ssi |
Calamos Market and American Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and American Beacon
The main advantage of trading using opposite Calamos Market and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, American Beacon 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 American Beacon will offset losses from the drop in American Beacon'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 |
| American Beacon vs. Calamos Market Neutral | American Beacon vs. Calamos Market Neutral | American Beacon vs. Calamos Market Neutral | American Beacon vs. Calamos Market Neutral |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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