Correlation Between Procter Gamble and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and Calamos Growth 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 Procter Gamble and Calamos Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and Calamos Growth And, you can compare the effects of market volatilities on Procter Gamble and Calamos Growth 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 Procter Gamble with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and Calamos Growth.
Diversification Opportunities for Procter Gamble and Calamos Growth
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Procter and Calamos is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and Calamos Growth And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth And and Procter Gamble 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 Procter Gamble are associated (or correlated) with Calamos Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Growth And has no effect on the direction of Procter Gamble i.e., Procter Gamble and Calamos Growth go up and down completely randomly.
Pair Corralation between Procter Gamble and Calamos Growth
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 1.38 times less return on investment than Calamos Growth. In addition to that, Procter Gamble is 1.44 times more volatile than Calamos Growth And. It trades about 0.08 of its total potential returns per unit of risk. Calamos Growth And is currently generating about 0.16 per unit of volatility. If you would invest 3,699 in Calamos Growth And on September 1, 2024 and sell it today you would earn a total of 1,208 from holding Calamos Growth And or generate 32.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Procter Gamble vs. Calamos Growth And
Performance |
| Timeline |
| Procter Gamble |
| Calamos Growth And |
Procter Gamble and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and Calamos Growth
The main advantage of trading using opposite Procter Gamble and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, Calamos Growth 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 Growth will offset losses from the drop in Calamos Growth's long position.| Procter Gamble vs. Colgate Palmolive | Procter Gamble vs. Unilever PLC ADR | Procter Gamble vs. Kimberly Clark | Procter Gamble vs. Estee Lauder Companies |
| Calamos Growth vs. Barings Active Short | Calamos Growth vs. Aqr Sustainable Long Short | Calamos Growth vs. Ab Select Longshort | Calamos Growth vs. Goldman Sachs Short Term |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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