Correlation Between Forum Real and Calamos Opportunistic
Can any of the company-specific risk be diversified away by investing in both Forum 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 Forum 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 Forum Real Estate and Calamos Opportunistic Value, you can compare the effects of market volatilities on Forum 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 Forum Real with a short position of Calamos Opportunistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Forum Real and Calamos Opportunistic.
Diversification Opportunities for Forum Real and Calamos Opportunistic
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Forum and Calamos is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Forum 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 Forum 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 Forum 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 Forum Real i.e., Forum Real and Calamos Opportunistic go up and down completely randomly.
Pair Corralation between Forum Real and Calamos Opportunistic
Assuming the 90 days horizon Forum Real Estate is expected to generate 0.05 times more return on investment than Calamos Opportunistic. However, Forum Real Estate is 20.03 times less risky than Calamos Opportunistic. It trades about 0.68 of its potential returns per unit of risk. Calamos Opportunistic Value is currently generating about -0.11 per unit of risk. If you would invest 955.00 in Forum Real Estate on November 1, 2024 and sell it today you would earn a total of 17.00 from holding Forum Real Estate or generate 1.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.5% |
| Values | Daily Returns |
Forum Real Estate vs. Calamos Opportunistic Value
Performance |
| Timeline |
| Forum Real Estate |
| Calamos Opportunistic |
Forum Real and Calamos Opportunistic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Forum Real and Calamos Opportunistic
The main advantage of trading using opposite Forum Real and Calamos Opportunistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Forum 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.| Forum Real vs. Payden Government Fund | Forum Real vs. Us Government Securities | Forum Real vs. Voya Government Money | Forum Real vs. Intermediate Government Bond |
| Calamos Opportunistic vs. Siit High Yield | Calamos Opportunistic vs. Multisector Bond Sma | Calamos Opportunistic vs. Doubleline Total Return | Calamos Opportunistic vs. Artisan High Income |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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