Correlation Between NYSE Composite and Calamos Opportunistic
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Calamos Opportunistic 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 Opportunistic 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 Opportunistic Value, you can compare the effects of market volatilities on NYSE Composite and Calamos Opportunistic 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 Opportunistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Calamos Opportunistic.
Diversification Opportunities for NYSE Composite and Calamos Opportunistic
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NYSE and Calamos is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Calamos Opportunistic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Opportunistic 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 Opportunistic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Opportunistic has no effect on the direction of NYSE Composite i.e., NYSE Composite and Calamos Opportunistic go up and down completely randomly.
Pair Corralation between NYSE Composite and Calamos Opportunistic
Assuming the 90 days trading horizon NYSE Composite is expected to under-perform the Calamos Opportunistic. But the index apears to be less risky and, when comparing its historical volatility, NYSE Composite is 1.2 times less risky than Calamos Opportunistic. The index trades about -0.12 of its potential returns per unit of risk. The Calamos Opportunistic Value is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 1,630 in Calamos Opportunistic Value on January 14, 2025 and sell it today you would lose (79.00) from holding Calamos Opportunistic Value or give up 4.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Calamos Opportunistic Value
Performance |
| Timeline |
NYSE Composite and Calamos Opportunistic Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Calamos Opportunistic Value
Pair trading matchups for Calamos Opportunistic
Pair Trading with NYSE Composite and Calamos Opportunistic
The main advantage of trading using opposite NYSE Composite and Calamos Opportunistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Calamos Opportunistic 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 Opportunistic will offset losses from the drop in Calamos Opportunistic's long position.| NYSE Composite vs. Vinci Partners Investments | NYSE Composite vs. Gladstone Investment | NYSE Composite vs. Greentown Management Holdings | NYSE Composite vs. Avient Corp |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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