Correlation Between Lind Capital and Calamos Market
Can any of the company-specific risk be diversified away by investing in both Lind Capital 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 Lind Capital and Calamos Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lind Capital Partners and Calamos Market Neutral, you can compare the effects of market volatilities on Lind Capital 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 Lind Capital with a short position of Calamos Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lind Capital and Calamos Market.
Diversification Opportunities for Lind Capital and Calamos Market
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lind and Calamos is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Lind Capital Partners 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 Lind Capital 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 Lind Capital Partners 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 Lind Capital i.e., Lind Capital and Calamos Market go up and down completely randomly.
Pair Corralation between Lind Capital and Calamos Market
Assuming the 90 days horizon Lind Capital Partners is expected to generate 3.23 times more return on investment than Calamos Market. However, Lind Capital is 3.23 times more volatile than Calamos Market Neutral. It trades about 0.13 of its potential returns per unit of risk. Calamos Market Neutral is currently generating about 0.28 per unit of risk. If you would invest 894.00 in Lind Capital Partners on September 3, 2024 and sell it today you would earn a total of 7.00 from holding Lind Capital Partners or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lind Capital Partners vs. Calamos Market Neutral
Performance |
| Timeline |
| Lind Capital Partners |
| Calamos Market Neutral |
Lind Capital and Calamos Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lind Capital and Calamos Market
The main advantage of trading using opposite Lind Capital and Calamos Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lind Capital 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.| Lind Capital vs. Vanguard Total Stock | Lind Capital vs. Vanguard 500 Index | Lind Capital vs. Vanguard Total Stock | Lind Capital vs. Vanguard Total Stock |
| Calamos Market vs. Limited Term Tax | Calamos Market vs. Lind Capital Partners | Calamos Market vs. Morningstar Municipal Bond | Calamos Market vs. Victory High Income |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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