Correlation Between Dow Jones and Calamos Opportunistic
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Calamos Opportunistic 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 Opportunistic 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 Opportunistic Value, you can compare the effects of market volatilities on Dow Jones and Calamos Opportunistic 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 Opportunistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Calamos Opportunistic.
Diversification Opportunities for Dow Jones and Calamos Opportunistic
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dow and Calamos is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Calamos Opportunistic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Opportunistic 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 Opportunistic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Opportunistic has no effect on the direction of Dow Jones i.e., Dow Jones and Calamos Opportunistic go up and down completely randomly.
Pair Corralation between Dow Jones and Calamos Opportunistic
Assuming the 90 days trading horizon Dow Jones Industrial is expected to under-perform the Calamos Opportunistic. But the index apears to be less risky and, when comparing its historical volatility, Dow Jones Industrial is 1.21 times less risky than Calamos Opportunistic. The index trades about -0.22 of its potential returns per unit of risk. The Calamos Opportunistic Value is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 1,744 in Calamos Opportunistic Value on November 27, 2024 and sell it today you would lose (11.00) from holding Calamos Opportunistic Value or give up 0.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Calamos Opportunistic Value
Performance |
| Timeline |
Dow Jones and Calamos Opportunistic Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Calamos Opportunistic Value
Pair trading matchups for Calamos Opportunistic
Pair Trading with Dow Jones and Calamos Opportunistic
The main advantage of trading using opposite Dow Jones and Calamos Opportunistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Calamos Opportunistic 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 Opportunistic will offset losses from the drop in Calamos Opportunistic's long position.The idea behind Dow Jones Industrial and Calamos Opportunistic Value 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 Opportunistic vs. Invesco Energy Fund | Calamos Opportunistic vs. Blackrock All Cap Energy | Calamos Opportunistic vs. World Energy Fund | Calamos Opportunistic vs. Pimco Energy Tactical |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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