Correlation Between SPDR SSgA and Calamos Alternative
Can any of the company-specific risk be diversified away by investing in both SPDR SSgA 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 SPDR SSgA and Calamos Alternative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR SSgA Income and Calamos Alternative Nasdaq, you can compare the effects of market volatilities on SPDR SSgA 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 SPDR SSgA with a short position of Calamos Alternative. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SSgA and Calamos Alternative.
Diversification Opportunities for SPDR SSgA and Calamos Alternative
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPDR and Calamos is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SSgA Income and Calamos Alternative Nasdaq in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Alternative and SPDR SSgA 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 SPDR SSgA Income 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 SPDR SSgA i.e., SPDR SSgA and Calamos Alternative go up and down completely randomly.
Pair Corralation between SPDR SSgA and Calamos Alternative
Given the investment horizon of 90 days SPDR SSgA is expected to generate 3.92 times less return on investment than Calamos Alternative. But when comparing it to its historical volatility, SPDR SSgA Income is 1.88 times less risky than Calamos Alternative. It trades about 0.05 of its potential returns per unit of risk. Calamos Alternative Nasdaq is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,349 in Calamos Alternative Nasdaq on October 9, 2024 and sell it today you would earn a total of 497.00 from holding Calamos Alternative Nasdaq or generate 21.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 45.56% |
| Values | Daily Returns |
SPDR SSgA Income vs. Calamos Alternative Nasdaq
Performance |
| Timeline |
| SPDR SSgA Income |
| Calamos Alternative |
SPDR SSgA and Calamos Alternative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SSgA and Calamos Alternative
The main advantage of trading using opposite SPDR SSgA and Calamos Alternative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SSgA 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.| SPDR SSgA vs. Cabana Target Drawdown | SPDR SSgA vs. Aquagold International | SPDR SSgA vs. Thrivent High Yield | SPDR SSgA vs. Morningstar Unconstrained Allocation |
| Calamos Alternative vs. FT Vest Equity | Calamos Alternative vs. Northern Lights | Calamos Alternative vs. Dimensional International High | Calamos Alternative vs. First Trust Exchange Traded |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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