Correlation Between The Hartford and Calamos Market
Can any of the company-specific risk be diversified away by investing in both The Hartford 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 Hartford 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 Hartford Emerging and Calamos Market Neutral, you can compare the effects of market volatilities on The Hartford 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 Hartford with a short position of Calamos Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Calamos Market.
Diversification Opportunities for The Hartford and Calamos Market
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between THE and Calamos is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Emerging 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 Hartford 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 Hartford Emerging 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 Hartford i.e., The Hartford and Calamos Market go up and down completely randomly.
Pair Corralation between The Hartford and Calamos Market
Assuming the 90 days horizon The Hartford Emerging is expected to generate 1.0 times more return on investment than Calamos Market. However, The Hartford is 1.0 times more volatile than Calamos Market Neutral. It trades about 0.06 of its potential returns per unit of risk. Calamos Market Neutral is currently generating about 0.06 per unit of risk. If you would invest 381.00 in The Hartford Emerging on September 3, 2024 and sell it today you would earn a total of 51.00 from holding The Hartford Emerging or generate 13.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Emerging vs. Calamos Market Neutral
Performance |
| Timeline |
| Hartford Emerging |
| Calamos Market Neutral |
The Hartford and Calamos Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Calamos Market
The main advantage of trading using opposite The Hartford and Calamos Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford 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 Hartford vs. HUMANA INC | The Hartford vs. Aquagold International | The Hartford vs. Barloworld Ltd ADR | The Hartford vs. Morningstar Unconstrained Allocation |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |