Correlation Between Old Westbury and Calamos Dividend
Can any of the company-specific risk be diversified away by investing in both Old Westbury and Calamos Dividend 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 Old Westbury and Calamos Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Westbury Large and Calamos Dividend Growth, you can compare the effects of market volatilities on Old Westbury and Calamos Dividend 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 Old Westbury with a short position of Calamos Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Calamos Dividend.
Diversification Opportunities for Old Westbury and Calamos Dividend
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Old and Calamos is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Large and Calamos Dividend Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Dividend Growth and Old Westbury 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 Old Westbury Large are associated (or correlated) with Calamos Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Dividend Growth has no effect on the direction of Old Westbury i.e., Old Westbury and Calamos Dividend go up and down completely randomly.
Pair Corralation between Old Westbury and Calamos Dividend
Assuming the 90 days horizon Old Westbury is expected to generate 1.12 times less return on investment than Calamos Dividend. But when comparing it to its historical volatility, Old Westbury Large is 1.04 times less risky than Calamos Dividend. It trades about 0.11 of its potential returns per unit of risk. Calamos Dividend Growth is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,269 in Calamos Dividend Growth on September 12, 2024 and sell it today you would earn a total of 730.00 from holding Calamos Dividend Growth or generate 57.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Old Westbury Large vs. Calamos Dividend Growth
Performance |
| Timeline |
| Old Westbury Large |
| Calamos Dividend Growth |
Old Westbury and Calamos Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Calamos Dividend
The main advantage of trading using opposite Old Westbury and Calamos Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury position performs unexpectedly, Calamos Dividend 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 Dividend will offset losses from the drop in Calamos Dividend's long position.| Old Westbury vs. Lord Abbett Government | Old Westbury vs. Us Government Securities | Old Westbury vs. Dreyfus Government Cash | Old Westbury vs. Goldman Sachs Government |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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