Correlation Between Fidelity Real and Calamos International
Can any of the company-specific risk be diversified away by investing in both Fidelity Real and Calamos International 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 Fidelity Real and Calamos International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Real Estate and Calamos International Small, you can compare the effects of market volatilities on Fidelity Real and Calamos International 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 Fidelity Real with a short position of Calamos International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Real and Calamos International.
Diversification Opportunities for Fidelity Real and Calamos International
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Calamos is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Real Estate and Calamos International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos International and Fidelity Real 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 Fidelity Real Estate are associated (or correlated) with Calamos International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos International has no effect on the direction of Fidelity Real i.e., Fidelity Real and Calamos International go up and down completely randomly.
Pair Corralation between Fidelity Real and Calamos International
Assuming the 90 days horizon Fidelity Real is expected to generate 2.53 times less return on investment than Calamos International. But when comparing it to its historical volatility, Fidelity Real Estate is 3.77 times less risky than Calamos International. It trades about 0.14 of its potential returns per unit of risk. Calamos International Small is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 987.00 in Calamos International Small on September 15, 2024 and sell it today you would earn a total of 14.00 from holding Calamos International Small or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Real Estate vs. Calamos International Small
Performance |
| Timeline |
| Fidelity Real Estate |
| Calamos International |
Fidelity Real and Calamos International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Real and Calamos International
The main advantage of trading using opposite Fidelity Real and Calamos International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Real position performs unexpectedly, Calamos International 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 International will offset losses from the drop in Calamos International's long position.| Fidelity Real vs. Transamerica Cleartrack Retirement | Fidelity Real vs. Sa Worldwide Moderate | Fidelity Real vs. Dimensional Retirement Income | Fidelity Real vs. Blackrock Moderate Prepared |
| Calamos International vs. Guggenheim Risk Managed | Calamos International vs. Deutsche Real Estate | Calamos International vs. Fidelity Real Estate | Calamos International vs. Redwood Real Estate |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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