Correlation Between Matson Money and Calamos Opportunistic
Can any of the company-specific risk be diversified away by investing in both Matson Money 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 Matson Money and Calamos Opportunistic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matson Money Equity and Calamos Opportunistic Value, you can compare the effects of market volatilities on Matson Money 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 Matson Money with a short position of Calamos Opportunistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matson Money and Calamos Opportunistic.
Diversification Opportunities for Matson Money and Calamos Opportunistic
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Matson and Calamos is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Matson Money Equity and Calamos Opportunistic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Opportunistic and Matson Money 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 Matson Money Equity 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 Matson Money i.e., Matson Money and Calamos Opportunistic go up and down completely randomly.
Pair Corralation between Matson Money and Calamos Opportunistic
Assuming the 90 days horizon Matson Money Equity is expected to under-perform the Calamos Opportunistic. In addition to that, Matson Money is 1.07 times more volatile than Calamos Opportunistic Value. It trades about -0.11 of its total potential returns per unit of risk. Calamos Opportunistic Value is currently generating about 0.17 per unit of volatility. If you would invest 2,308 in Calamos Opportunistic Value on September 12, 2024 and sell it today you would earn a total of 52.00 from holding Calamos Opportunistic Value or generate 2.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Matson Money Equity vs. Calamos Opportunistic Value
Performance |
| Timeline |
| Matson Money Equity |
| Calamos Opportunistic |
Matson Money and Calamos Opportunistic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matson Money and Calamos Opportunistic
The main advantage of trading using opposite Matson Money and Calamos Opportunistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matson Money 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.| Matson Money vs. Vanguard Total Stock | Matson Money vs. Vanguard 500 Index | Matson Money vs. Vanguard Total Stock | Matson Money vs. Vanguard Total Stock |
| Calamos Opportunistic vs. Cref Money Market | Calamos Opportunistic vs. Franklin Government Money | Calamos Opportunistic vs. General Money Market | Calamos Opportunistic vs. Matson Money Equity |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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