Correlation Between Diamond Hill and Calamos Phineus
Can any of the company-specific risk be diversified away by investing in both Diamond Hill and Calamos Phineus 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 Diamond Hill and Calamos Phineus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Diamond Hill Long Short and Calamos Phineus Longshort, you can compare the effects of market volatilities on Diamond Hill and Calamos Phineus 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 Diamond Hill with a short position of Calamos Phineus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamond Hill and Calamos Phineus.
Diversification Opportunities for Diamond Hill and Calamos Phineus
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Diamond and Calamos is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Diamond Hill Long Short and Calamos Phineus Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Phineus Longshort and Diamond Hill 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 Diamond Hill Long Short are associated (or correlated) with Calamos Phineus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Phineus Longshort has no effect on the direction of Diamond Hill i.e., Diamond Hill and Calamos Phineus go up and down completely randomly.
Pair Corralation between Diamond Hill and Calamos Phineus
Assuming the 90 days horizon Diamond Hill Long Short is expected to generate 1.28 times more return on investment than Calamos Phineus. However, Diamond Hill is 1.28 times more volatile than Calamos Phineus Longshort. It trades about 0.06 of its potential returns per unit of risk. Calamos Phineus Longshort is currently generating about 0.06 per unit of risk. If you would invest 2,847 in Diamond Hill Long Short on September 1, 2024 and sell it today you would earn a total of 17.00 from holding Diamond Hill Long Short or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diamond Hill Long Short vs. Calamos Phineus Longshort
Performance |
| Timeline |
| Diamond Hill Long |
| Calamos Phineus Longshort |
Diamond Hill and Calamos Phineus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diamond Hill and Calamos Phineus
The main advantage of trading using opposite Diamond Hill and Calamos Phineus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamond Hill position performs unexpectedly, Calamos Phineus 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 Phineus will offset losses from the drop in Calamos Phineus' long position.| Diamond Hill vs. Franklin Adjustable Government | Diamond Hill vs. Government Securities Fund | Diamond Hill vs. Franklin Government Money | Diamond Hill vs. Dunham Porategovernment Bond |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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