Correlation Between NYSE Composite and Calamos International
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Calamos International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Calamos International Growth, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Calamos International. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Calamos International.
Diversification Opportunities for NYSE Composite and Calamos International
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NYSE and Calamos is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Calamos International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos International and NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Calamos International go up and down completely randomly.
Pair Corralation between NYSE Composite and Calamos International
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.07 times less return on investment than Calamos International. But when comparing it to its historical volatility, NYSE Composite is 1.47 times less risky than Calamos International. It trades about 0.15 of its potential returns per unit of risk. Calamos International Growth is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,699 in Calamos International Growth on August 29, 2024 and sell it today you would earn a total of 607.00 from holding Calamos International Growth or generate 35.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Calamos International Growth
Performance |
| Timeline |
NYSE Composite and Calamos International Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Calamos International Growth
Pair trading matchups for Calamos International
Pair Trading with NYSE Composite and Calamos International
The main advantage of trading using opposite NYSE Composite and Calamos International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Sphere Entertainment Co | NYSE Composite vs. Weibo Corp | NYSE Composite vs. BCE Inc | NYSE Composite vs. Pinterest |
| Calamos International vs. Ms Global Fixed | Calamos International vs. Rbc Ultra Short Fixed | Calamos International vs. Dreyfusstandish Global Fixed | Calamos International vs. Multisector Bond Sma |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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