Correlation Between Msift High and Calamos Market
Can any of the company-specific risk be diversified away by investing in both Msift High 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 Msift High and Calamos Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Msift High Yield and Calamos Market Neutral, you can compare the effects of market volatilities on Msift High 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 Msift High with a short position of Calamos Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Msift High and Calamos Market.
Diversification Opportunities for Msift High and Calamos Market
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Msift and Calamos is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Msift High Yield 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 Msift High 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 Msift High Yield 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 Msift High i.e., Msift High and Calamos Market go up and down completely randomly.
Pair Corralation between Msift High and Calamos Market
Assuming the 90 days horizon Msift High Yield is expected to generate 1.94 times more return on investment than Calamos Market. However, Msift High is 1.94 times more volatile than Calamos Market Neutral. It trades about 0.28 of its potential returns per unit of risk. Calamos Market Neutral is currently generating about 0.34 per unit of risk. If you would invest 853.00 in Msift High Yield on November 3, 2024 and sell it today you would earn a total of 8.00 from holding Msift High Yield or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Msift High Yield vs. Calamos Market Neutral
Performance |
| Timeline |
| Msift High Yield |
| Calamos Market Neutral |
Msift High and Calamos Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Msift High and Calamos Market
The main advantage of trading using opposite Msift High and Calamos Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Msift High 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.| Msift High vs. Sprott Gold Equity | Msift High vs. World Precious Minerals | Msift High vs. Oppenheimer Gold Special | Msift High vs. Gold And Precious |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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