Correlation Between The Emerging and Calamos Market
Can any of the company-specific risk be diversified away by investing in both The 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 The 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 The Emerging Markets and Calamos Market Neutral, you can compare the effects of market volatilities on The 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 The Emerging with a short position of Calamos Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Emerging and Calamos Market.
Diversification Opportunities for The Emerging and Calamos Market
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between The and Calamos is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding The 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 The 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 The 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 The Emerging i.e., The Emerging and Calamos Market go up and down completely randomly.
Pair Corralation between The Emerging and Calamos Market
Assuming the 90 days horizon The Emerging Markets is expected to under-perform the Calamos Market. In addition to that, The Emerging is 8.48 times more volatile than Calamos Market Neutral. It trades about -0.19 of its total potential returns per unit of risk. Calamos Market Neutral is currently generating about 0.29 per unit of volatility. If you would invest 1,496 in Calamos Market Neutral on September 3, 2024 and sell it today you would earn a total of 9.00 from holding Calamos Market Neutral or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Emerging Markets vs. Calamos Market Neutral
Performance |
| Timeline |
| Emerging Markets |
| Calamos Market Neutral |
The Emerging and Calamos Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Emerging and Calamos Market
The main advantage of trading using opposite The Emerging and Calamos Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The 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.| The Emerging vs. Vanguard Total Stock | The Emerging vs. Vanguard 500 Index | The Emerging vs. Vanguard Total Stock | The Emerging vs. Vanguard Total Stock |
| Calamos Market vs. Calamos Market Neutral | Calamos Market vs. Absolute Convertible Arbitrage | Calamos Market vs. Aqr Diversified Arbitrage | Calamos Market vs. Palmer Square Ssi |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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