Correlation Between Transamerica Financial and Calamos Opportunistic
Can any of the company-specific risk be diversified away by investing in both Transamerica Financial and Calamos Opportunistic 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 Transamerica Financial and Calamos Opportunistic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transamerica Financial Life and Calamos Opportunistic Value, you can compare the effects of market volatilities on Transamerica Financial and Calamos Opportunistic 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 Transamerica Financial with a short position of Calamos Opportunistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transamerica Financial and Calamos Opportunistic.
Diversification Opportunities for Transamerica Financial and Calamos Opportunistic
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Transamerica and Calamos is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Transamerica Financial Life and Calamos Opportunistic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Opportunistic and Transamerica Financial 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 Transamerica Financial Life are associated (or correlated) with Calamos Opportunistic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Opportunistic has no effect on the direction of Transamerica Financial i.e., Transamerica Financial and Calamos Opportunistic go up and down completely randomly.
Pair Corralation between Transamerica Financial and Calamos Opportunistic
Assuming the 90 days horizon Transamerica Financial Life is expected to under-perform the Calamos Opportunistic. But the mutual fund apears to be less risky and, when comparing its historical volatility, Transamerica Financial Life is 1.02 times less risky than Calamos Opportunistic. The mutual fund trades about -0.05 of its potential returns per unit of risk. The Calamos Opportunistic Value is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,308 in Calamos Opportunistic Value on September 12, 2024 and sell it today you would earn a total of 52.00 from holding Calamos Opportunistic Value or generate 2.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Transamerica Financial Life vs. Calamos Opportunistic Value
Performance |
| Timeline |
| Transamerica Financial |
| Calamos Opportunistic |
Transamerica Financial and Calamos Opportunistic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transamerica Financial and Calamos Opportunistic
The main advantage of trading using opposite Transamerica Financial and Calamos Opportunistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transamerica Financial position performs unexpectedly, Calamos Opportunistic 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 Opportunistic will offset losses from the drop in Calamos Opportunistic's long position.| Transamerica Financial vs. SCOR PK | Transamerica Financial vs. Morningstar Unconstrained Allocation | Transamerica Financial vs. Thrivent High Yield | Transamerica Financial vs. Via Renewables |
| Calamos Opportunistic vs. Cref Money Market | Calamos Opportunistic vs. Franklin Government Money | Calamos Opportunistic vs. General Money Market | Calamos Opportunistic vs. Matson Money Equity |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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