Correlation Between IShares ESG and Calamos Alternative
Can any of the company-specific risk be diversified away by investing in both IShares ESG and Calamos Alternative 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 IShares ESG and Calamos Alternative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares ESG Aware and Calamos Alternative Nasdaq, you can compare the effects of market volatilities on IShares ESG and Calamos Alternative 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 IShares ESG with a short position of Calamos Alternative. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares ESG and Calamos Alternative.
Diversification Opportunities for IShares ESG and Calamos Alternative
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IShares and Calamos is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding iShares ESG Aware and Calamos Alternative Nasdaq in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Alternative and IShares ESG 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 iShares ESG Aware are associated (or correlated) with Calamos Alternative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Alternative has no effect on the direction of IShares ESG i.e., IShares ESG and Calamos Alternative go up and down completely randomly.
Pair Corralation between IShares ESG and Calamos Alternative
Given the investment horizon of 90 days iShares ESG Aware is expected to under-perform the Calamos Alternative. In addition to that, IShares ESG is 28.03 times more volatile than Calamos Alternative Nasdaq. It trades about -0.22 of its total potential returns per unit of risk. Calamos Alternative Nasdaq is currently generating about 0.24 per unit of volatility. If you would invest 2,763 in Calamos Alternative Nasdaq on September 12, 2024 and sell it today you would earn a total of 109.00 from holding Calamos Alternative Nasdaq or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares ESG Aware vs. Calamos Alternative Nasdaq
Performance |
| Timeline |
| iShares ESG Aware |
| Calamos Alternative |
IShares ESG and Calamos Alternative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares ESG and Calamos Alternative
The main advantage of trading using opposite IShares ESG and Calamos Alternative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares ESG position performs unexpectedly, Calamos Alternative 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 Alternative will offset losses from the drop in Calamos Alternative's long position.| IShares ESG vs. Vanguard Value Index | IShares ESG vs. Vanguard High Dividend | IShares ESG vs. iShares Russell 1000 | IShares ESG vs. iShares Core Dividend |
| Calamos Alternative vs. iShares Core Growth | Calamos Alternative vs. Alpha Architect Gdsdn | Calamos Alternative vs. STF Tactical Growth | Calamos Alternative vs. Collaborative Investment Series |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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