Correlation Between Fidelity Real and Calamos Opportunistic
Can any of the company-specific risk be diversified away by investing in both Fidelity Real 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 Fidelity Real and Calamos Opportunistic 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 Opportunistic Value, you can compare the effects of market volatilities on Fidelity Real 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 Fidelity Real with a short position of Calamos Opportunistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Real and Calamos Opportunistic.
Diversification Opportunities for Fidelity Real and Calamos Opportunistic
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Calamos is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Real Estate and Calamos Opportunistic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Opportunistic 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 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 Fidelity Real i.e., Fidelity Real and Calamos Opportunistic go up and down completely randomly.
Pair Corralation between Fidelity Real and Calamos Opportunistic
Assuming the 90 days horizon Fidelity Real is expected to generate 1.83 times less return on investment than Calamos Opportunistic. But when comparing it to its historical volatility, Fidelity Real Estate is 2.4 times less risky than Calamos Opportunistic. It trades about 0.2 of its potential returns per unit of risk. Calamos Opportunistic Value is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,238 in Calamos Opportunistic Value on November 8, 2024 and sell it today you would earn a total of 58.00 from holding Calamos Opportunistic Value or generate 2.59% 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 Opportunistic Value
Performance |
| Timeline |
| Fidelity Real Estate |
| Calamos Opportunistic |
Fidelity Real and Calamos Opportunistic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Real and Calamos Opportunistic
The main advantage of trading using opposite Fidelity Real and Calamos Opportunistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Real 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.| Fidelity Real vs. Calvert Conservative Allocation | Fidelity Real vs. Aqr Diversified Arbitrage | Fidelity Real vs. Stone Ridge Diversified | Fidelity Real vs. Delaware Limited Term Diversified |
| Calamos Opportunistic vs. Cref Inflation Linked Bond | Calamos Opportunistic vs. Ab Bond Inflation | Calamos Opportunistic vs. Tiaa Cref Inflation Link | Calamos Opportunistic vs. Simt Multi Asset Inflation |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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