Correlation Between Financials Ultrasector and Calamos International
Can any of the company-specific risk be diversified away by investing in both Financials Ultrasector 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 Financials Ultrasector and Calamos International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Financials Ultrasector Profund and Calamos International Growth, you can compare the effects of market volatilities on Financials Ultrasector 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 Financials Ultrasector with a short position of Calamos International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Financials Ultrasector and Calamos International.
Diversification Opportunities for Financials Ultrasector and Calamos International
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Financials and Calamos is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Financials Ultrasector Profund and Calamos International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos International and Financials Ultrasector 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 Financials Ultrasector Profund 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 Financials Ultrasector i.e., Financials Ultrasector and Calamos International go up and down completely randomly.
Pair Corralation between Financials Ultrasector and Calamos International
Assuming the 90 days horizon Financials Ultrasector Profund is expected to generate 1.27 times more return on investment than Calamos International. However, Financials Ultrasector is 1.27 times more volatile than Calamos International Growth. It trades about 0.13 of its potential returns per unit of risk. Calamos International Growth is currently generating about 0.07 per unit of risk. If you would invest 3,008 in Financials Ultrasector Profund on September 14, 2024 and sell it today you would earn a total of 1,414 from holding Financials Ultrasector Profund or generate 47.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Financials Ultrasector Profund vs. Calamos International Growth
Performance |
| Timeline |
| Financials Ultrasector |
| Calamos International |
Financials Ultrasector and Calamos International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Financials Ultrasector and Calamos International
The main advantage of trading using opposite Financials Ultrasector and Calamos International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Financials Ultrasector 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.| Financials Ultrasector vs. Short Real Estate | Financials Ultrasector vs. Short Real Estate | Financials Ultrasector vs. Ultrashort Mid Cap Profund | Financials Ultrasector vs. Ultrashort Mid Cap Profund |
| Calamos International vs. Lord Abbett Small | Calamos International vs. Victory Rs Partners | Calamos International vs. Palm Valley Capital | Calamos International vs. Valic Company I |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |