Correlation Between Locorr Market and Calamos Total
Can any of the company-specific risk be diversified away by investing in both Locorr Market and Calamos Total 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 Locorr Market and Calamos Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Locorr Market Trend and Calamos Total Return, you can compare the effects of market volatilities on Locorr Market and Calamos Total 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 Locorr Market with a short position of Calamos Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Locorr Market and Calamos Total.
Diversification Opportunities for Locorr Market and Calamos Total
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Locorr and Calamos is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Locorr Market Trend and Calamos Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Total Return and Locorr Market 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 Locorr Market Trend are associated (or correlated) with Calamos Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Total Return has no effect on the direction of Locorr Market i.e., Locorr Market and Calamos Total go up and down completely randomly.
Pair Corralation between Locorr Market and Calamos Total
Assuming the 90 days horizon Locorr Market Trend is expected to under-perform the Calamos Total. In addition to that, Locorr Market is 2.79 times more volatile than Calamos Total Return. It trades about 0.0 of its total potential returns per unit of risk. Calamos Total Return is currently generating about 0.07 per unit of volatility. If you would invest 852.00 in Calamos Total Return on September 4, 2024 and sell it today you would earn a total of 52.00 from holding Calamos Total Return or generate 6.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Locorr Market Trend vs. Calamos Total Return
Performance |
| Timeline |
| Locorr Market Trend |
| Calamos Total Return |
Locorr Market and Calamos Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Locorr Market and Calamos Total
The main advantage of trading using opposite Locorr Market and Calamos Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Locorr Market position performs unexpectedly, Calamos Total 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 Total will offset losses from the drop in Calamos Total's long position.| Locorr Market vs. Locorr Market Trend | Locorr Market vs. Locorr Spectrum Income | Locorr Market vs. Locorr Spectrum Income | Locorr Market vs. Locorr Longshort Modities |
| Calamos Total vs. Calamos Antetokounmpo Sustainable | Calamos Total vs. Innealta Capital Sector | Calamos Total vs. Calamos Antetokounmpo Sustainable | Calamos Total vs. Calamos Antetokounmpo Sustainable |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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