Correlation Between Calamos Market and Arrow Managed
Can any of the company-specific risk be diversified away by investing in both Calamos Market and Arrow Managed 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 Arrow Managed 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 Arrow Managed Futures, you can compare the effects of market volatilities on Calamos Market and Arrow Managed 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 Arrow Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Arrow Managed.
Diversification Opportunities for Calamos Market and Arrow Managed
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Arrow is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Arrow Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arrow Managed Futures 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 Arrow Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arrow Managed Futures has no effect on the direction of Calamos Market i.e., Calamos Market and Arrow Managed go up and down completely randomly.
Pair Corralation between Calamos Market and Arrow Managed
Assuming the 90 days horizon Calamos Market is expected to generate 10.98 times less return on investment than Arrow Managed. But when comparing it to its historical volatility, Calamos Market Neutral is 12.55 times less risky than Arrow Managed. It trades about 0.36 of its potential returns per unit of risk. Arrow Managed Futures is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 524.00 in Arrow Managed Futures on September 4, 2024 and sell it today you would earn a total of 43.00 from holding Arrow Managed Futures or generate 8.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Market Neutral vs. Arrow Managed Futures
Performance |
| Timeline |
| Calamos Market Neutral |
| Arrow Managed Futures |
Calamos Market and Arrow Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and Arrow Managed
The main advantage of trading using opposite Calamos Market and Arrow Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, Arrow Managed 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 Arrow Managed will offset losses from the drop in Arrow Managed's long position.| Calamos Market vs. Sentinel Small Pany | Calamos Market vs. Wasatch Small Cap | Calamos Market vs. Small Cap Stock | Calamos Market vs. Harbor Diversified International |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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