Correlation Between Chevron Corp and Calamos Hedged
Can any of the company-specific risk be diversified away by investing in both Chevron Corp and Calamos Hedged 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 Chevron Corp and Calamos Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chevron Corp and Calamos Hedged Equity, you can compare the effects of market volatilities on Chevron Corp and Calamos Hedged 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 Chevron Corp with a short position of Calamos Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and Calamos Hedged.
Diversification Opportunities for Chevron Corp and Calamos Hedged
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Chevron and Calamos is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and Calamos Hedged Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Hedged Equity and Chevron Corp 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 Chevron Corp are associated (or correlated) with Calamos Hedged. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Hedged Equity has no effect on the direction of Chevron Corp i.e., Chevron Corp and Calamos Hedged go up and down completely randomly.
Pair Corralation between Chevron Corp and Calamos Hedged
Considering the 90-day investment horizon Chevron Corp is expected to generate 1.29 times less return on investment than Calamos Hedged. In addition to that, Chevron Corp is 3.61 times more volatile than Calamos Hedged Equity. It trades about 0.02 of its total potential returns per unit of risk. Calamos Hedged Equity is currently generating about 0.1 per unit of volatility. If you would invest 1,757 in Calamos Hedged Equity on November 22, 2024 and sell it today you would earn a total of 15.00 from holding Calamos Hedged Equity or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chevron Corp vs. Calamos Hedged Equity
Performance |
| Timeline |
| Chevron Corp |
| Calamos Hedged Equity |
Chevron Corp and Calamos Hedged Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chevron Corp and Calamos Hedged
The main advantage of trading using opposite Chevron Corp and Calamos Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, Calamos Hedged 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 Hedged will offset losses from the drop in Calamos Hedged's long position.| Chevron Corp vs. TotalEnergies SE ADR | Chevron Corp vs. Equinor ASA ADR | Chevron Corp vs. Petrleo Brasileiro SA | Chevron Corp vs. Ecopetrol SA ADR |
| Calamos Hedged vs. American Beacon Soundpointfltrtinc | Calamos Hedged vs. Calamos Hedged Equity | Calamos Hedged vs. Calamos Market Neutral | Calamos Hedged vs. Aqr Long Short Equity |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |