Correlation Between Hennessy and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Hennessy and Calamos Global 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 Hennessy and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hennessy Bp Energy and Calamos Global Equity, you can compare the effects of market volatilities on Hennessy and Calamos Global 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 Hennessy with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hennessy and Calamos Global.
Diversification Opportunities for Hennessy and Calamos Global
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hennessy and Calamos is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Hennessy Bp Energy and Calamos Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Equity and Hennessy 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 Hennessy Bp Energy are associated (or correlated) with Calamos Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Global Equity has no effect on the direction of Hennessy i.e., Hennessy and Calamos Global go up and down completely randomly.
Pair Corralation between Hennessy and Calamos Global
Assuming the 90 days horizon Hennessy is expected to generate 1.65 times less return on investment than Calamos Global. In addition to that, Hennessy is 1.42 times more volatile than Calamos Global Equity. It trades about 0.04 of its total potential returns per unit of risk. Calamos Global Equity is currently generating about 0.09 per unit of volatility. If you would invest 1,269 in Calamos Global Equity on August 25, 2024 and sell it today you would earn a total of 670.00 from holding Calamos Global Equity or generate 52.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hennessy Bp Energy vs. Calamos Global Equity
Performance |
| Timeline |
| Hennessy Bp Energy |
| Calamos Global Equity |
Hennessy and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hennessy and Calamos Global
The main advantage of trading using opposite Hennessy and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hennessy position performs unexpectedly, Calamos Global 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 Global will offset losses from the drop in Calamos Global's long position.| Hennessy vs. World Energy Fund | Hennessy vs. Ivy Energy Fund | Hennessy vs. Blackrock All Cap Energy | Hennessy vs. Energy Fund Class |
| Calamos Global vs. Hennessy Bp Energy | Calamos Global vs. Franklin Natural Resources | Calamos Global vs. Short Oil Gas | Calamos Global vs. Alpsalerian Energy Infrastructure |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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