Correlation Between Calamos Market and Calamos Short-term
Can any of the company-specific risk be diversified away by investing in both Calamos Market and Calamos Short-term 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 Short-term 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 Short Term Bond, you can compare the effects of market volatilities on Calamos Market and Calamos Short-term 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 Short-term. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Calamos Short-term.
Diversification Opportunities for Calamos Market and Calamos Short-term
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and Calamos is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Calamos Short Term Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Short Term 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 Short-term. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Short Term has no effect on the direction of Calamos Market i.e., Calamos Market and Calamos Short-term go up and down completely randomly.
Pair Corralation between Calamos Market and Calamos Short-term
Assuming the 90 days horizon Calamos Market Neutral is expected to generate 0.89 times more return on investment than Calamos Short-term. However, Calamos Market Neutral is 1.13 times less risky than Calamos Short-term. It trades about 0.24 of its potential returns per unit of risk. Calamos Short Term Bond is currently generating about 0.14 per unit of risk. If you would invest 1,393 in Calamos Market Neutral on November 9, 2024 and sell it today you would earn a total of 112.00 from holding Calamos Market Neutral or generate 8.04% 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. Calamos Short Term Bond
Performance |
| Timeline |
| Calamos Market Neutral |
| Calamos Short Term |
Calamos Market and Calamos Short-term Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and Calamos Short-term
The main advantage of trading using opposite Calamos Market and Calamos Short-term positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, Calamos Short-term 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 Short-term will offset losses from the drop in Calamos Short-term's long position.| Calamos Market vs. Alger Health Sciences | Calamos Market vs. Hartford Healthcare Hls | Calamos Market vs. Highland Longshort Healthcare | Calamos Market vs. Alphacentric Lifesci Healthcare |
| Calamos Short-term vs. Barings Active Short | Calamos Short-term vs. Old Westbury Short Term | Calamos Short-term vs. Alpine Ultra Short | Calamos Short-term vs. Cmg Ultra Short |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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