Correlation Between Microsoft and Calamos Total
Can any of the company-specific risk be diversified away by investing in both Microsoft 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 Microsoft and Calamos Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and Calamos Total Return, you can compare the effects of market volatilities on Microsoft 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 Microsoft with a short position of Calamos Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Calamos Total.
Diversification Opportunities for Microsoft and Calamos Total
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Microsoft and Calamos is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft 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 Microsoft 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 Microsoft 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 Microsoft i.e., Microsoft and Calamos Total go up and down completely randomly.
Pair Corralation between Microsoft and Calamos Total
Given the investment horizon of 90 days Microsoft is expected to generate 3.0 times more return on investment than Calamos Total. However, Microsoft is 3.0 times more volatile than Calamos Total Return. It trades about 0.51 of its potential returns per unit of risk. Calamos Total Return is currently generating about 0.04 per unit of risk. If you would invest 41,493 in Microsoft on September 19, 2024 and sell it today you would earn a total of 3,953 from holding Microsoft or generate 9.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microsoft vs. Calamos Total Return
Performance |
| Timeline |
| Microsoft |
| Calamos Total Return |
Microsoft and Calamos Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Calamos Total
The main advantage of trading using opposite Microsoft and Calamos Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft 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.| Microsoft vs. Global Blue Group | Microsoft vs. Aurora Mobile | Microsoft vs. Marqeta | Microsoft vs. Nextnav Acquisition Corp |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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