Correlation Between NYSE Composite and Calamos Evolving
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Calamos Evolving 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 Evolving 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 Evolving World, you can compare the effects of market volatilities on NYSE Composite and Calamos Evolving 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 Evolving. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Calamos Evolving.
Diversification Opportunities for NYSE Composite and Calamos Evolving
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and Calamos is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Calamos Evolving World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Evolving World 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 Evolving. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Evolving World has no effect on the direction of NYSE Composite i.e., NYSE Composite and Calamos Evolving go up and down completely randomly.
Pair Corralation between NYSE Composite and Calamos Evolving
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.65 times more return on investment than Calamos Evolving. However, NYSE Composite is 1.55 times less risky than Calamos Evolving. It trades about 0.11 of its potential returns per unit of risk. Calamos Evolving World is currently generating about 0.05 per unit of risk. If you would invest 1,766,949 in NYSE Composite on September 1, 2024 and sell it today you would earn a total of 260,255 from holding NYSE Composite or generate 14.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
NYSE Composite vs. Calamos Evolving World
Performance |
| Timeline |
NYSE Composite and Calamos Evolving Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Calamos Evolving World
Pair trading matchups for Calamos Evolving
Pair Trading with NYSE Composite and Calamos Evolving
The main advantage of trading using opposite NYSE Composite and Calamos Evolving positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Calamos Evolving 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 Evolving will offset losses from the drop in Calamos Evolving's long position.| NYSE Composite vs. Acumen Pharmaceuticals | NYSE Composite vs. Mind Medicine | NYSE Composite vs. NL Industries | NYSE Composite vs. Ecovyst |
| Calamos Evolving vs. Calamos International Growth | Calamos Evolving vs. Calamos Growth Income | Calamos Evolving vs. Calamos Global Growth | Calamos Evolving vs. Calamos Vertible Fund |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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