Correlation Between Aberdeen Emerging and Calamos Market
Can any of the company-specific risk be diversified away by investing in both Aberdeen Emerging and Calamos Market 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 Aberdeen Emerging and Calamos Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aberdeen Emerging Markets and Calamos Market Neutral, you can compare the effects of market volatilities on Aberdeen Emerging and Calamos Market 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 Aberdeen Emerging with a short position of Calamos Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Emerging and Calamos Market.
Diversification Opportunities for Aberdeen Emerging and Calamos Market
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aberdeen and Calamos is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Emerging Markets and Calamos Market Neutral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Market Neutral and Aberdeen Emerging 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 Aberdeen Emerging Markets are associated (or correlated) with Calamos Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Market Neutral has no effect on the direction of Aberdeen Emerging i.e., Aberdeen Emerging and Calamos Market go up and down completely randomly.
Pair Corralation between Aberdeen Emerging and Calamos Market
Assuming the 90 days horizon Aberdeen Emerging is expected to generate 1.17 times less return on investment than Calamos Market. In addition to that, Aberdeen Emerging is 2.03 times more volatile than Calamos Market Neutral. It trades about 0.02 of its total potential returns per unit of risk. Calamos Market Neutral is currently generating about 0.06 per unit of volatility. If you would invest 1,340 in Calamos Market Neutral on September 4, 2024 and sell it today you would earn a total of 167.00 from holding Calamos Market Neutral or generate 12.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aberdeen Emerging Markets vs. Calamos Market Neutral
Performance |
| Timeline |
| Aberdeen Emerging Markets |
| Calamos Market Neutral |
Aberdeen Emerging and Calamos Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen Emerging and Calamos Market
The main advantage of trading using opposite Aberdeen Emerging and Calamos Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen Emerging position performs unexpectedly, Calamos Market 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 Market will offset losses from the drop in Calamos Market's long position.| Aberdeen Emerging vs. Bbh Intermediate Municipal | Aberdeen Emerging vs. Artisan High Income | Aberdeen Emerging vs. Versatile Bond Portfolio | Aberdeen Emerging vs. Multisector Bond Sma |
| Calamos Market vs. Needham Aggressive Growth | Calamos Market vs. Morningstar Aggressive Growth | Calamos Market vs. Vanguard Star Fund | Calamos Market vs. Goldman Sachs High |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Commodity Directory Find actively traded commodities issued by global exchanges |