Correlation Between Eventide Healthcare and Calamos Vertible
Can any of the company-specific risk be diversified away by investing in both Eventide Healthcare and Calamos Vertible 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 Eventide Healthcare and Calamos Vertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eventide Healthcare Life and Calamos Vertible Fund, you can compare the effects of market volatilities on Eventide Healthcare and Calamos Vertible 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 Eventide Healthcare with a short position of Calamos Vertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eventide Healthcare and Calamos Vertible.
Diversification Opportunities for Eventide Healthcare and Calamos Vertible
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eventide and Calamos is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Eventide Healthcare Life and Calamos Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Vertible and Eventide Healthcare 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 Eventide Healthcare Life are associated (or correlated) with Calamos Vertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Vertible has no effect on the direction of Eventide Healthcare i.e., Eventide Healthcare and Calamos Vertible go up and down completely randomly.
Pair Corralation between Eventide Healthcare and Calamos Vertible
Assuming the 90 days horizon Eventide Healthcare is expected to generate 1.82 times less return on investment than Calamos Vertible. In addition to that, Eventide Healthcare is 2.88 times more volatile than Calamos Vertible Fund. It trades about 0.01 of its total potential returns per unit of risk. Calamos Vertible Fund is currently generating about 0.08 per unit of volatility. If you would invest 1,908 in Calamos Vertible Fund on September 1, 2024 and sell it today you would earn a total of 372.00 from holding Calamos Vertible Fund or generate 19.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.78% |
| Values | Daily Returns |
Eventide Healthcare Life vs. Calamos Vertible Fund
Performance |
| Timeline |
| Eventide Healthcare Life |
| Calamos Vertible |
Eventide Healthcare and Calamos Vertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eventide Healthcare and Calamos Vertible
The main advantage of trading using opposite Eventide Healthcare and Calamos Vertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eventide Healthcare position performs unexpectedly, Calamos Vertible 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 Vertible will offset losses from the drop in Calamos Vertible's long position.| Eventide Healthcare vs. Large Cap Growth Profund | Eventide Healthcare vs. Dunham Large Cap | Eventide Healthcare vs. Tax Managed Large Cap | Eventide Healthcare vs. Transamerica Large Cap |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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