Correlation Between Korea Closed and Calamos Phineus
Can any of the company-specific risk be diversified away by investing in both Korea Closed and Calamos Phineus 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 Korea Closed and Calamos Phineus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Closed and Calamos Phineus Longshort, you can compare the effects of market volatilities on Korea Closed and Calamos Phineus 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 Korea Closed with a short position of Calamos Phineus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Closed and Calamos Phineus.
Diversification Opportunities for Korea Closed and Calamos Phineus
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Korea and Calamos is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Korea Closed and Calamos Phineus Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Phineus Longshort and Korea Closed 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 Korea Closed are associated (or correlated) with Calamos Phineus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Phineus Longshort has no effect on the direction of Korea Closed i.e., Korea Closed and Calamos Phineus go up and down completely randomly.
Pair Corralation between Korea Closed and Calamos Phineus
Allowing for the 90-day total investment horizon Korea Closed is expected to under-perform the Calamos Phineus. In addition to that, Korea Closed is 3.19 times more volatile than Calamos Phineus Longshort. It trades about -0.01 of its total potential returns per unit of risk. Calamos Phineus Longshort is currently generating about 0.13 per unit of volatility. If you would invest 1,482 in Calamos Phineus Longshort on September 1, 2024 and sell it today you would earn a total of 227.00 from holding Calamos Phineus Longshort or generate 15.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Closed vs. Calamos Phineus Longshort
Performance |
| Timeline |
| Korea Closed |
| Calamos Phineus Longshort |
Korea Closed and Calamos Phineus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Closed and Calamos Phineus
The main advantage of trading using opposite Korea Closed and Calamos Phineus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Closed position performs unexpectedly, Calamos Phineus 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 Phineus will offset losses from the drop in Calamos Phineus' long position.| Korea Closed vs. Mexico Equity And | Korea Closed vs. Western Asset Global | Korea Closed vs. New Germany Closed | Korea Closed vs. MFS Charter Income |
| Calamos Phineus vs. Calamos Phineus Longshort | Calamos Phineus vs. Calamos Market Neutral | Calamos Phineus vs. Calamos Phineus Longshort |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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