Correlation Between Live Oak and Calamos Evolving
Can any of the company-specific risk be diversified away by investing in both Live Oak and Calamos Evolving 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 Live Oak and Calamos Evolving into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Live Oak Health and Calamos Evolving World, you can compare the effects of market volatilities on Live Oak and Calamos Evolving 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 Live Oak with a short position of Calamos Evolving. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Oak and Calamos Evolving.
Diversification Opportunities for Live Oak and Calamos Evolving
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Live and Calamos is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Live Oak Health and Calamos Evolving World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Evolving World and Live Oak 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 Live Oak Health are associated (or correlated) with Calamos Evolving. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Evolving World has no effect on the direction of Live Oak i.e., Live Oak and Calamos Evolving go up and down completely randomly.
Pair Corralation between Live Oak and Calamos Evolving
Assuming the 90 days horizon Live Oak Health is expected to generate 0.62 times more return on investment than Calamos Evolving. However, Live Oak Health is 1.62 times less risky than Calamos Evolving. It trades about 0.37 of its potential returns per unit of risk. Calamos Evolving World is currently generating about -0.04 per unit of risk. If you would invest 2,010 in Live Oak Health on November 3, 2024 and sell it today you would earn a total of 119.00 from holding Live Oak Health or generate 5.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Oak Health vs. Calamos Evolving World
Performance |
| Timeline |
| Live Oak Health |
| Calamos Evolving World |
Live Oak and Calamos Evolving Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Oak and Calamos Evolving
The main advantage of trading using opposite Live Oak and Calamos Evolving positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Oak position performs unexpectedly, Calamos Evolving 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 Evolving will offset losses from the drop in Calamos Evolving's long position.| Live Oak vs. Black Oak Emerging | Live Oak vs. Pin Oak Equity | Live Oak vs. Red Oak Technology | Live Oak vs. White Oak Select |
| Calamos Evolving vs. Dunham High Yield | Calamos Evolving vs. City National Rochdale | Calamos Evolving vs. Simt High Yield | Calamos Evolving vs. Msift High Yield |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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