Correlation Between Palmer Square and Calamos Market
Can any of the company-specific risk be diversified away by investing in both Palmer Square and Calamos Market 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 Palmer Square and Calamos Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Palmer Square Ssi and Calamos Market Neutral, you can compare the effects of market volatilities on Palmer Square and Calamos Market 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 Palmer Square with a short position of Calamos Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Palmer Square and Calamos Market.
Diversification Opportunities for Palmer Square and Calamos Market
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Palmer and Calamos is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Palmer Square Ssi and Calamos Market Neutral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Market Neutral and Palmer Square 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 Palmer Square Ssi are associated (or correlated) with Calamos Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Market Neutral has no effect on the direction of Palmer Square i.e., Palmer Square and Calamos Market go up and down completely randomly.
Pair Corralation between Palmer Square and Calamos Market
Assuming the 90 days horizon Palmer Square Ssi is expected to generate 0.23 times more return on investment than Calamos Market. However, Palmer Square Ssi is 4.39 times less risky than Calamos Market. It trades about 0.32 of its potential returns per unit of risk. Calamos Market Neutral is currently generating about 0.06 per unit of risk. If you would invest 849.00 in Palmer Square Ssi on September 2, 2024 and sell it today you would earn a total of 151.00 from holding Palmer Square Ssi or generate 17.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Palmer Square Ssi vs. Calamos Market Neutral
Performance |
| Timeline |
| Palmer Square Ssi |
| Calamos Market Neutral |
Palmer Square and Calamos Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Palmer Square and Calamos Market
The main advantage of trading using opposite Palmer Square and Calamos Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Palmer Square position performs unexpectedly, Calamos Market 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 Market will offset losses from the drop in Calamos Market's long position.| Palmer Square vs. Pimco Short Asset | Palmer Square vs. Doubleline Low Duration | Palmer Square vs. Dfa One Year Fixed | Palmer Square vs. Short Term Income Fund |
| Calamos Market vs. Franklin Federal Limited Term | Calamos Market vs. Maryland Short Term Tax Free | Calamos Market vs. Angel Oak Ultrashort | Calamos Market 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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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