Correlation Between Collaborative Investment and Calamos Alternative
Can any of the company-specific risk be diversified away by investing in both Collaborative Investment and Calamos Alternative 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 Collaborative Investment and Calamos Alternative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Collaborative Investment Series and Calamos Alternative Nasdaq, you can compare the effects of market volatilities on Collaborative Investment and Calamos Alternative 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 Collaborative Investment with a short position of Calamos Alternative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Collaborative Investment and Calamos Alternative.
Diversification Opportunities for Collaborative Investment and Calamos Alternative
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Collaborative and Calamos is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Collaborative Investment Serie and Calamos Alternative Nasdaq in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Alternative and Collaborative Investment 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 Collaborative Investment Series are associated (or correlated) with Calamos Alternative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Alternative has no effect on the direction of Collaborative Investment i.e., Collaborative Investment and Calamos Alternative go up and down completely randomly.
Pair Corralation between Collaborative Investment and Calamos Alternative
Given the investment horizon of 90 days Collaborative Investment is expected to generate 8.6 times less return on investment than Calamos Alternative. But when comparing it to its historical volatility, Collaborative Investment Series is 4.21 times less risky than Calamos Alternative. It trades about 0.12 of its potential returns per unit of risk. Calamos Alternative Nasdaq is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 2,763 in Calamos Alternative Nasdaq on September 12, 2024 and sell it today you would earn a total of 109.00 from holding Calamos Alternative Nasdaq or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Collaborative Investment Serie vs. Calamos Alternative Nasdaq
Performance |
| Timeline |
| Collaborative Investment |
| Calamos Alternative |
Collaborative Investment and Calamos Alternative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Collaborative Investment and Calamos Alternative
The main advantage of trading using opposite Collaborative Investment and Calamos Alternative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Collaborative Investment position performs unexpectedly, Calamos Alternative 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 Alternative will offset losses from the drop in Calamos Alternative's long position.The idea behind Collaborative Investment Series and Calamos Alternative Nasdaq pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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