Correlation Between Dow Jones and Calamos Total
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Calamos Total 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 Total 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 Total Return, you can compare the effects of market volatilities on Dow Jones and Calamos Total 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 Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Calamos Total.
Diversification Opportunities for Dow Jones and Calamos Total
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dow and Calamos is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Calamos Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Total Return 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 Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Total Return has no effect on the direction of Dow Jones i.e., Dow Jones and Calamos Total go up and down completely randomly.
Pair Corralation between Dow Jones and Calamos Total
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 2.6 times more return on investment than Calamos Total. However, Dow Jones is 2.6 times more volatile than Calamos Total Return. It trades about 0.25 of its potential returns per unit of risk. Calamos Total Return is currently generating about 0.05 per unit of risk. If you would invest 4,238,757 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 233,449 from holding Dow Jones Industrial or generate 5.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Calamos Total Return
Performance |
| Timeline |
Dow Jones and Calamos Total Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Calamos Total Return
Pair trading matchups for Calamos Total
Pair Trading with Dow Jones and Calamos Total
The main advantage of trading using opposite Dow Jones and Calamos Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Calamos Total 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 Total will offset losses from the drop in Calamos Total's long position.| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
| Calamos Total vs. Goldman Sachs Mlp | Calamos Total vs. Clearbridge Energy Mlp | Calamos Total vs. Ivy Natural Resources | Calamos Total vs. Dreyfus Natural Resources |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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