Correlation Between Shelton Emerging and Calamos Market
Can any of the company-specific risk be diversified away by investing in both Shelton Emerging and Calamos Market 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 Shelton Emerging and Calamos Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shelton Emerging Markets and Calamos Market Neutral, you can compare the effects of market volatilities on Shelton Emerging and Calamos Market 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 Shelton Emerging with a short position of Calamos Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Emerging and Calamos Market.
Diversification Opportunities for Shelton Emerging and Calamos Market
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shelton and Calamos is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Emerging Markets and Calamos Market Neutral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Market Neutral and Shelton Emerging 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 Shelton Emerging Markets are associated (or correlated) with Calamos Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Market Neutral has no effect on the direction of Shelton Emerging i.e., Shelton Emerging and Calamos Market go up and down completely randomly.
Pair Corralation between Shelton Emerging and Calamos Market
Assuming the 90 days horizon Shelton Emerging Markets is expected to under-perform the Calamos Market. In addition to that, Shelton Emerging is 8.3 times more volatile than Calamos Market Neutral. It trades about -0.03 of its total potential returns per unit of risk. Calamos Market Neutral is currently generating about 0.26 per unit of volatility. If you would invest 1,439 in Calamos Market Neutral on September 3, 2024 and sell it today you would earn a total of 66.00 from holding Calamos Market Neutral or generate 4.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shelton Emerging Markets vs. Calamos Market Neutral
Performance |
| Timeline |
| Shelton Emerging Markets |
| Calamos Market Neutral |
Shelton Emerging and Calamos Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shelton Emerging and Calamos Market
The main advantage of trading using opposite Shelton Emerging and Calamos Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Emerging position performs unexpectedly, Calamos Market 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 Market will offset losses from the drop in Calamos Market's long position.The idea behind Shelton Emerging Markets and Calamos Market Neutral 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 Market vs. Calamos Market Neutral | Calamos Market vs. Absolute Convertible Arbitrage | Calamos Market vs. Aqr Diversified Arbitrage | Calamos Market vs. Palmer Square Ssi |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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