Correlation Between IQ Healthy and Calamos Alternative
Can any of the company-specific risk be diversified away by investing in both IQ Healthy and Calamos Alternative 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 IQ Healthy and Calamos Alternative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IQ Healthy Hearts and Calamos Alternative Nasdaq, you can compare the effects of market volatilities on IQ Healthy and Calamos Alternative 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 IQ Healthy with a short position of Calamos Alternative. Check out your portfolio center. Please also check ongoing floating volatility patterns of IQ Healthy and Calamos Alternative.
Diversification Opportunities for IQ Healthy and Calamos Alternative
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HART and Calamos is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding IQ Healthy Hearts and Calamos Alternative Nasdaq in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Alternative and IQ Healthy 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 IQ Healthy Hearts are associated (or correlated) with Calamos Alternative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Alternative has no effect on the direction of IQ Healthy i.e., IQ Healthy and Calamos Alternative go up and down completely randomly.
Pair Corralation between IQ Healthy and Calamos Alternative
Given the investment horizon of 90 days IQ Healthy Hearts is expected to under-perform the Calamos Alternative. But the etf apears to be less risky and, when comparing its historical volatility, IQ Healthy Hearts is 1.35 times less risky than Calamos Alternative. The etf trades about -0.08 of its potential returns per unit of risk. The Calamos Alternative Nasdaq is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 2,763 in Calamos Alternative Nasdaq on September 12, 2024 and sell it today you would earn a total of 109.00 from holding Calamos Alternative Nasdaq or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IQ Healthy Hearts vs. Calamos Alternative Nasdaq
Performance |
| Timeline |
| IQ Healthy Hearts |
| Calamos Alternative |
IQ Healthy and Calamos Alternative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IQ Healthy and Calamos Alternative
The main advantage of trading using opposite IQ Healthy and Calamos Alternative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IQ Healthy position performs unexpectedly, Calamos Alternative 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 Alternative will offset losses from the drop in Calamos Alternative's long position.| IQ Healthy vs. Invesco DWA Industrials | IQ Healthy vs. Invesco DWA Consumer | IQ Healthy vs. Invesco DWA Consumer | IQ Healthy vs. Invesco DWA Basic |
| Calamos Alternative vs. iShares Core Growth | Calamos Alternative vs. Alpha Architect Gdsdn | Calamos Alternative vs. STF Tactical Growth | Calamos Alternative vs. VanEck Inflation Allocation |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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