Correlation Between Live Oak and Calamos Timpani
Can any of the company-specific risk be diversified away by investing in both Live Oak and Calamos Timpani 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 Timpani 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 Timpani Smid, you can compare the effects of market volatilities on Live Oak and Calamos Timpani 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 Timpani. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Oak and Calamos Timpani.
Diversification Opportunities for Live Oak and Calamos Timpani
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Live and Calamos is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Live Oak Health and Calamos Timpani Smid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Timpani Smid 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 Timpani. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Timpani Smid has no effect on the direction of Live Oak i.e., Live Oak and Calamos Timpani go up and down completely randomly.
Pair Corralation between Live Oak and Calamos Timpani
Assuming the 90 days horizon Live Oak Health is expected to under-perform the Calamos Timpani. But the mutual fund apears to be less risky and, when comparing its historical volatility, Live Oak Health is 1.8 times less risky than Calamos Timpani. The mutual fund trades about -0.3 of its potential returns per unit of risk. The Calamos Timpani Smid is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,609 in Calamos Timpani Smid on September 13, 2024 and sell it today you would earn a total of 30.00 from holding Calamos Timpani Smid or generate 1.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Live Oak Health vs. Calamos Timpani Smid
Performance |
| Timeline |
| Live Oak Health |
| Calamos Timpani Smid |
Live Oak and Calamos Timpani Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Oak and Calamos Timpani
The main advantage of trading using opposite Live Oak and Calamos Timpani positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Oak position performs unexpectedly, Calamos Timpani 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 Timpani will offset losses from the drop in Calamos Timpani'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 |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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