Correlation Between Banking Portfolio and Calamos Hedged
Can any of the company-specific risk be diversified away by investing in both Banking Portfolio and Calamos Hedged 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 Banking Portfolio and Calamos Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banking Portfolio Banking and Calamos Hedged Equity, you can compare the effects of market volatilities on Banking Portfolio and Calamos Hedged 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 Banking Portfolio with a short position of Calamos Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banking Portfolio and Calamos Hedged.
Diversification Opportunities for Banking Portfolio and Calamos Hedged
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Banking and Calamos is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Banking Portfolio Banking and Calamos Hedged Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Hedged Equity and Banking Portfolio 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 Banking Portfolio Banking are associated (or correlated) with Calamos Hedged. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Hedged Equity has no effect on the direction of Banking Portfolio i.e., Banking Portfolio and Calamos Hedged go up and down completely randomly.
Pair Corralation between Banking Portfolio and Calamos Hedged
Assuming the 90 days horizon Banking Portfolio Banking is expected to generate 6.89 times more return on investment than Calamos Hedged. However, Banking Portfolio is 6.89 times more volatile than Calamos Hedged Equity. It trades about 0.23 of its potential returns per unit of risk. Calamos Hedged Equity is currently generating about 0.32 per unit of risk. If you would invest 3,107 in Banking Portfolio Banking on September 1, 2024 and sell it today you would earn a total of 443.00 from holding Banking Portfolio Banking or generate 14.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Banking Portfolio Banking vs. Calamos Hedged Equity
Performance |
| Timeline |
| Banking Portfolio Banking |
| Calamos Hedged Equity |
Banking Portfolio and Calamos Hedged Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banking Portfolio and Calamos Hedged
The main advantage of trading using opposite Banking Portfolio and Calamos Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banking Portfolio position performs unexpectedly, Calamos Hedged 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 Hedged will offset losses from the drop in Calamos Hedged's long position.| Banking Portfolio vs. Fidelity Freedom 2015 | Banking Portfolio vs. Fidelity Puritan Fund | Banking Portfolio vs. Fidelity Puritan Fund | Banking Portfolio vs. Fidelity Pennsylvania Municipal |
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
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |