Correlation Between Calamos Market and Calamos International
Can any of the company-specific risk be diversified away by investing in both Calamos Market and Calamos International 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 International 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 International Small, you can compare the effects of market volatilities on Calamos Market and Calamos International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Calamos International.
Diversification Opportunities for Calamos Market and Calamos International
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Calamos is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Calamos International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos International 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 International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos International has no effect on the direction of Calamos Market i.e., Calamos Market and Calamos International go up and down completely randomly.
Pair Corralation between Calamos Market and Calamos International
Assuming the 90 days horizon Calamos Market Neutral is expected to generate 0.14 times more return on investment than Calamos International. However, Calamos Market Neutral is 7.14 times less risky than Calamos International. It trades about 0.33 of its potential returns per unit of risk. Calamos International Small is currently generating about 0.02 per unit of risk. If you would invest 1,494 in Calamos Market Neutral on September 1, 2024 and sell it today you would earn a total of 11.00 from holding Calamos Market Neutral or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Calamos Market Neutral vs. Calamos International Small
Performance |
| Timeline |
| Calamos Market Neutral |
| Calamos International |
Calamos Market and Calamos International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and Calamos International
The main advantage of trading using opposite Calamos Market and Calamos International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, Calamos International 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 International will offset losses from the drop in Calamos International's long position.The idea behind Calamos Market Neutral and Calamos International Small pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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