Correlation Between Oil Gas and Calamos Opportunistic
Can any of the company-specific risk be diversified away by investing in both Oil Gas 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 Oil Gas and Calamos Opportunistic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oil Gas Ultrasector and Calamos Opportunistic Value, you can compare the effects of market volatilities on Oil Gas 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 Oil Gas with a short position of Calamos Opportunistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oil Gas and Calamos Opportunistic.
Diversification Opportunities for Oil Gas and Calamos Opportunistic
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oil and Calamos is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Oil Gas Ultrasector and Calamos Opportunistic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Opportunistic and Oil Gas 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 Oil Gas Ultrasector 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 Oil Gas i.e., Oil Gas and Calamos Opportunistic go up and down completely randomly.
Pair Corralation between Oil Gas and Calamos Opportunistic
Assuming the 90 days horizon Oil Gas Ultrasector is expected to under-perform the Calamos Opportunistic. In addition to that, Oil Gas is 2.81 times more volatile than Calamos Opportunistic Value. It trades about -0.5 of its total potential returns per unit of risk. Calamos Opportunistic Value is currently generating about 0.38 per unit of volatility. If you would invest 2,371 in Calamos Opportunistic Value on September 19, 2024 and sell it today you would earn a total of 95.00 from holding Calamos Opportunistic Value or generate 4.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oil Gas Ultrasector vs. Calamos Opportunistic Value
Performance |
| Timeline |
| Oil Gas Ultrasector |
| Calamos Opportunistic |
Oil Gas and Calamos Opportunistic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oil Gas and Calamos Opportunistic
The main advantage of trading using opposite Oil Gas and Calamos Opportunistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oil Gas 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.| Oil Gas vs. Oil Gas Ultrasector | Oil Gas vs. Ultramid Cap Profund Ultramid Cap | Oil Gas vs. Precious Metals Ultrasector | Oil Gas vs. Real Estate Ultrasector |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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