Correlation Between Calamos Market and Calamos Phineus
Can any of the company-specific risk be diversified away by investing in both Calamos Market and Calamos Phineus 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 Phineus 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 Phineus Longshort, you can compare the effects of market volatilities on Calamos Market and Calamos Phineus 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 Phineus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Calamos Phineus.
Diversification Opportunities for Calamos Market and Calamos Phineus
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Calamos is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Calamos Phineus Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Phineus 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 Calamos Phineus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Phineus Longshort has no effect on the direction of Calamos Market i.e., Calamos Market and Calamos Phineus go up and down completely randomly.
Pair Corralation between Calamos Market and Calamos Phineus
Assuming the 90 days horizon Calamos Market is expected to generate 2.53 times less return on investment than Calamos Phineus. But when comparing it to its historical volatility, Calamos Market Neutral is 3.69 times less risky than Calamos Phineus. It trades about 0.24 of its potential returns per unit of risk. Calamos Phineus Longshort is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,588 in Calamos Phineus Longshort on August 29, 2024 and sell it today you would earn a total of 24.00 from holding Calamos Phineus Longshort or generate 1.51% 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. Calamos Phineus Longshort
Performance |
| Timeline |
| Calamos Market Neutral |
| Calamos Phineus Longshort |
Calamos Market and Calamos Phineus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and Calamos Phineus
The main advantage of trading using opposite Calamos Market and Calamos Phineus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, Calamos Phineus 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 Phineus will offset losses from the drop in Calamos Phineus' long position.| Calamos Market vs. Counterpoint Tactical Municipal | Calamos Market vs. Nuveen Minnesota Municipal | Calamos Market vs. Franklin High Yield | Calamos Market vs. Ab Impact Municipal |
| Calamos Phineus vs. Neuberger Berman Long | Calamos Phineus vs. Neuberger Berman Long | Calamos Phineus vs. Diamond Hill Long Short | Calamos Phineus vs. Pimco Rae Worldwide |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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