Correlation Between Dupont De and Calamos High
Can any of the company-specific risk be diversified away by investing in both Dupont De 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 Dupont De and Calamos High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dupont De Nemours and Calamos High Income, you can compare the effects of market volatilities on Dupont De 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 Dupont De with a short position of Calamos High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Calamos High.
Diversification Opportunities for Dupont De and Calamos High
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dupont and Calamos is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours 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 Dupont De 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 Dupont De Nemours 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 Dupont De i.e., Dupont De and Calamos High go up and down completely randomly.
Pair Corralation between Dupont De and Calamos High
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 6.65 times more return on investment than Calamos High. However, Dupont De is 6.65 times more volatile than Calamos High Income. It trades about 0.03 of its potential returns per unit of risk. Calamos High Income is currently generating about 0.16 per unit of risk. If you would invest 6,802 in Dupont De Nemours on August 26, 2024 and sell it today you would earn a total of 1,530 from holding Dupont De Nemours or generate 22.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. Calamos High Income
Performance |
| Timeline |
| Dupont De Nemours |
| Calamos High Income |
Dupont De and Calamos High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Calamos High
The main advantage of trading using opposite Dupont De and Calamos High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De 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.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Calamos High vs. Invesco Government Fund | Calamos High vs. Franklin Adjustable Government | Calamos High vs. Short Term Government Fund | Calamos High vs. Lord Abbett Government |
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 CEOs Directory module to screen CEOs from public companies around the world.
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