Correlation Between Arrow Managed and Calamos Market
Can any of the company-specific risk be diversified away by investing in both Arrow Managed 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 Arrow Managed and Calamos Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arrow Managed Futures and Calamos Market Neutral, you can compare the effects of market volatilities on Arrow Managed 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 Arrow Managed with a short position of Calamos Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arrow Managed and Calamos Market.
Diversification Opportunities for Arrow Managed and Calamos Market
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Arrow and Calamos is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Arrow Managed Futures 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 Arrow Managed 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 Arrow Managed Futures 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 Arrow Managed i.e., Arrow Managed and Calamos Market go up and down completely randomly.
Pair Corralation between Arrow Managed and Calamos Market
Assuming the 90 days horizon Arrow Managed Futures is expected to under-perform the Calamos Market. In addition to that, Arrow Managed is 11.33 times more volatile than Calamos Market Neutral. It trades about -0.05 of its total potential returns per unit of risk. Calamos Market Neutral is currently generating about 0.26 per unit of volatility. If you would invest 1,438 in Calamos Market Neutral on September 3, 2024 and sell it today you would earn a total of 68.00 from holding Calamos Market Neutral or generate 4.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arrow Managed Futures vs. Calamos Market Neutral
Performance |
| Timeline |
| Arrow Managed Futures |
| Calamos Market Neutral |
Arrow Managed and Calamos Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arrow Managed and Calamos Market
The main advantage of trading using opposite Arrow Managed and Calamos Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arrow Managed 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.| Arrow Managed vs. Transamerica Funds | Arrow Managed vs. T Rowe Price | Arrow Managed vs. Cs 607 Tax | Arrow Managed vs. Intermediate Term Tax Free Bond |
| Calamos Market vs. Arrow Managed Futures | Calamos Market vs. Nasdaq 100 2x Strategy | Calamos Market vs. The Emerging Markets | Calamos Market vs. T Rowe Price |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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