Correlation Between Dimensional International and Calamos Alternative
Can any of the company-specific risk be diversified away by investing in both Dimensional International and Calamos Alternative 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 Dimensional International and Calamos Alternative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dimensional International High and Calamos Alternative Nasdaq, you can compare the effects of market volatilities on Dimensional International and Calamos Alternative 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 Dimensional International with a short position of Calamos Alternative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dimensional International and Calamos Alternative.
Diversification Opportunities for Dimensional International and Calamos Alternative
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dimensional and Calamos is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Dimensional International High and Calamos Alternative Nasdaq in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Alternative and Dimensional International 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 Dimensional International High are associated (or correlated) with Calamos Alternative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Alternative has no effect on the direction of Dimensional International i.e., Dimensional International and Calamos Alternative go up and down completely randomly.
Pair Corralation between Dimensional International and Calamos Alternative
Given the investment horizon of 90 days Dimensional International is expected to generate 1.75 times less return on investment than Calamos Alternative. But when comparing it to its historical volatility, Dimensional International High is 1.29 times less risky than Calamos Alternative. It trades about 0.19 of its potential returns per unit of risk. Calamos Alternative Nasdaq is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 2,739 in Calamos Alternative Nasdaq on September 14, 2024 and sell it today you would earn a total of 113.00 from holding Calamos Alternative Nasdaq or generate 4.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dimensional International High vs. Calamos Alternative Nasdaq
Performance |
| Timeline |
| Dimensional International |
| Calamos Alternative |
Dimensional International and Calamos Alternative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dimensional International and Calamos Alternative
The main advantage of trading using opposite Dimensional International and Calamos Alternative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dimensional International position performs unexpectedly, Calamos Alternative 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 Alternative will offset losses from the drop in Calamos Alternative's long position.The idea behind Dimensional International High and Calamos Alternative Nasdaq pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Calamos Alternative vs. FT Vest Equity | Calamos Alternative vs. Northern Lights | Calamos Alternative vs. Dimensional International High | Calamos Alternative vs. JPMorgan Fundamental Data |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |