Correlation Between Needham Aggressive and Calamos International
Can any of the company-specific risk be diversified away by investing in both Needham Aggressive and Calamos International 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 Needham Aggressive and Calamos International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Needham Aggressive Growth and Calamos International Growth, you can compare the effects of market volatilities on Needham Aggressive and Calamos International 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 Needham Aggressive with a short position of Calamos International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Needham Aggressive and Calamos International.
Diversification Opportunities for Needham Aggressive and Calamos International
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Needham and Calamos is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Needham Aggressive Growth and Calamos International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos International and Needham Aggressive 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 Needham Aggressive Growth are associated (or correlated) with Calamos International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos International has no effect on the direction of Needham Aggressive i.e., Needham Aggressive and Calamos International go up and down completely randomly.
Pair Corralation between Needham Aggressive and Calamos International
Assuming the 90 days horizon Needham Aggressive Growth is expected to generate 1.62 times more return on investment than Calamos International. However, Needham Aggressive is 1.62 times more volatile than Calamos International Growth. It trades about 0.34 of its potential returns per unit of risk. Calamos International Growth is currently generating about 0.1 per unit of risk. If you would invest 4,741 in Needham Aggressive Growth on September 19, 2024 and sell it today you would earn a total of 405.00 from holding Needham Aggressive Growth or generate 8.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Needham Aggressive Growth vs. Calamos International Growth
Performance |
| Timeline |
| Needham Aggressive Growth |
| Calamos International |
Needham Aggressive and Calamos International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Needham Aggressive and Calamos International
The main advantage of trading using opposite Needham Aggressive and Calamos International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Needham Aggressive position performs unexpectedly, Calamos International 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 International will offset losses from the drop in Calamos International's long position.| Needham Aggressive vs. Needham Aggressive Growth | Needham Aggressive vs. Needham Small Cap | Needham Aggressive vs. Ultramid Cap Profund Ultramid Cap | Needham Aggressive vs. Fidelity Advisor Semiconductors |
| Calamos International vs. Metropolitan West High | Calamos International vs. Needham Aggressive Growth | Calamos International vs. T Rowe Price | Calamos International vs. Calvert High Yield |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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