Correlation Between Dupont De and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both Dupont De and Calamos Growth 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 Growth 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 Growth Fund, you can compare the effects of market volatilities on Dupont De and Calamos Growth 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 Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Calamos Growth.
Diversification Opportunities for Dupont De and Calamos Growth
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dupont and Calamos is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Calamos Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth 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 Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Growth has no effect on the direction of Dupont De i.e., Dupont De and Calamos Growth go up and down completely randomly.
Pair Corralation between Dupont De and Calamos Growth
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to under-perform the Calamos Growth. In addition to that, Dupont De is 1.37 times more volatile than Calamos Growth Fund. It trades about -0.02 of its total potential returns per unit of risk. Calamos Growth Fund is currently generating about 0.15 per unit of volatility. If you would invest 4,505 in Calamos Growth Fund on August 25, 2024 and sell it today you would earn a total of 174.00 from holding Calamos Growth Fund or generate 3.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. Calamos Growth Fund
Performance |
| Timeline |
| Dupont De Nemours |
| Calamos Growth |
Dupont De and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Calamos Growth
The main advantage of trading using opposite Dupont De and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Calamos Growth 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 Growth will offset losses from the drop in Calamos Growth's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |