Correlation Between Dow Jones and Calamos Phineus
Can any of the company-specific risk be diversified away by investing in both Dow Jones 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 Dow Jones and Calamos Phineus 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 Phineus Longshort, you can compare the effects of market volatilities on Dow Jones 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 Dow Jones with a short position of Calamos Phineus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Calamos Phineus.
Diversification Opportunities for Dow Jones and Calamos Phineus
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dow and Calamos is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial 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 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 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 Dow Jones i.e., Dow Jones and Calamos Phineus go up and down completely randomly.
Pair Corralation between Dow Jones and Calamos Phineus
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 1.42 times more return on investment than Calamos Phineus. However, Dow Jones is 1.42 times more volatile than Calamos Phineus Longshort. It trades about 0.08 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 3,378,148 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 1,094,058 from holding Dow Jones Industrial or generate 32.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Calamos Phineus Longshort
Performance |
| Timeline |
Dow Jones and Calamos Phineus Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Calamos Phineus Longshort
Pair trading matchups for Calamos Phineus
Pair Trading with Dow Jones and Calamos Phineus
The main advantage of trading using opposite Dow Jones and Calamos Phineus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones 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.| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
| Calamos Phineus vs. Neuberger Berman Long | Calamos Phineus vs. Neuberger Berman Long | Calamos Phineus vs. Pimco Rae Worldwide |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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