Correlation Between Chevron Corp and Calamos High
Can any of the company-specific risk be diversified away by investing in both Chevron Corp and Calamos High 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 High 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 High Income, you can compare the effects of market volatilities on Chevron Corp and Calamos High 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 High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and Calamos High.
Diversification Opportunities for Chevron Corp and Calamos High
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chevron and Calamos is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and Calamos High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos High Income 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 High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos High Income has no effect on the direction of Chevron Corp i.e., Chevron Corp and Calamos High go up and down completely randomly.
Pair Corralation between Chevron Corp and Calamos High
Considering the 90-day investment horizon Chevron Corp is expected to generate 6.37 times more return on investment than Calamos High. However, Chevron Corp is 6.37 times more volatile than Calamos High Income. It trades about 0.05 of its potential returns per unit of risk. Calamos High Income is currently generating about 0.26 per unit of risk. If you would invest 13,947 in Chevron Corp on September 1, 2024 and sell it today you would earn a total of 2,246 from holding Chevron Corp or generate 16.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Chevron Corp vs. Calamos High Income
Performance |
| Timeline |
| Chevron Corp |
| Calamos High Income |
Chevron Corp and Calamos High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chevron Corp and Calamos High
The main advantage of trading using opposite Chevron Corp and Calamos High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, Calamos High 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 High will offset losses from the drop in Calamos High's long position.| Chevron Corp vs. Shell PLC ADR | Chevron Corp vs. BP PLC ADR | Chevron Corp vs. Equinor ASA ADR | Chevron Corp vs. Petrleo Brasileiro SA |
| Calamos High vs. Calamos Antetokounmpo Sustainable | Calamos High vs. Calamos Antetokounmpo Sustainable | Calamos High vs. Calamos Antetokounmpo Sustainable | Calamos High vs. Calamos Opportunistic Value |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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