Correlation Between Pace Small/medium and Calamos Hedged
Can any of the company-specific risk be diversified away by investing in both Pace Small/medium and Calamos Hedged 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 Pace Small/medium and Calamos Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pace Smallmedium Value and Calamos Hedged Equity, you can compare the effects of market volatilities on Pace Small/medium and Calamos Hedged 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 Pace Small/medium with a short position of Calamos Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pace Small/medium and Calamos Hedged.
Diversification Opportunities for Pace Small/medium and Calamos Hedged
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pace and Calamos is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Pace Smallmedium Value and Calamos Hedged Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Hedged Equity and Pace Small/medium 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 Pace Smallmedium Value are associated (or correlated) with Calamos Hedged. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Hedged Equity has no effect on the direction of Pace Small/medium i.e., Pace Small/medium and Calamos Hedged go up and down completely randomly.
Pair Corralation between Pace Small/medium and Calamos Hedged
Assuming the 90 days horizon Pace Smallmedium Value is expected to under-perform the Calamos Hedged. In addition to that, Pace Small/medium is 2.1 times more volatile than Calamos Hedged Equity. It trades about -0.26 of its total potential returns per unit of risk. Calamos Hedged Equity is currently generating about -0.05 per unit of volatility. If you would invest 1,696 in Calamos Hedged Equity on November 27, 2024 and sell it today you would lose (7.00) from holding Calamos Hedged Equity or give up 0.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pace Smallmedium Value vs. Calamos Hedged Equity
Performance |
| Timeline |
| Pace Smallmedium Value |
| Calamos Hedged Equity |
Pace Small/medium and Calamos Hedged Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pace Small/medium and Calamos Hedged
The main advantage of trading using opposite Pace Small/medium and Calamos Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pace Small/medium position performs unexpectedly, Calamos Hedged 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 Hedged will offset losses from the drop in Calamos Hedged's long position.| Pace Small/medium vs. Angel Oak Financial | Pace Small/medium vs. Gabelli Global Financial | Pace Small/medium vs. Prudential Financial Services | Pace Small/medium vs. Fidelity Advisor Financial |
| Calamos Hedged vs. Hartford Schroders Emerging | Calamos Hedged vs. Mondrian Emerging Markets | Calamos Hedged vs. Siit Emerging Markets | Calamos Hedged vs. Pimco Emerging Markets |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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