Correlation Between Dow Jones and Calamos Bitcoin
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Calamos Bitcoin 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 Dow Jones and Calamos Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and Calamos Bitcoin 90, you can compare the effects of market volatilities on Dow Jones and Calamos Bitcoin 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 Dow Jones with a short position of Calamos Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Calamos Bitcoin.
Diversification Opportunities for Dow Jones and Calamos Bitcoin
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dow and Calamos is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Calamos Bitcoin 90 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Bitcoin 90 and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with Calamos Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Bitcoin 90 has no effect on the direction of Dow Jones i.e., Dow Jones and Calamos Bitcoin go up and down completely randomly.
Pair Corralation between Dow Jones and Calamos Bitcoin
Assuming the 90 days trading horizon Dow Jones Industrial is expected to under-perform the Calamos Bitcoin. In addition to that, Dow Jones is 1.18 times more volatile than Calamos Bitcoin 90. It trades about -0.33 of its total potential returns per unit of risk. Calamos Bitcoin 90 is currently generating about -0.13 per unit of volatility. If you would invest 2,474 in Calamos Bitcoin 90 on December 17, 2024 and sell it today you would lose (60.00) from holding Calamos Bitcoin 90 or give up 2.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Calamos Bitcoin 90
Performance |
| Timeline |
Dow Jones and Calamos Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Calamos Bitcoin 90
Pair trading matchups for Calamos Bitcoin
Pair Trading with Dow Jones and Calamos Bitcoin
The main advantage of trading using opposite Dow Jones and Calamos Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Calamos Bitcoin 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 Bitcoin will offset losses from the drop in Calamos Bitcoin's long position.The idea behind Dow Jones Industrial and Calamos Bitcoin 90 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 Bitcoin vs. Grayscale Funds Trust | ||
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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