Correlation Between Palm Valley and Calamos International
Can any of the company-specific risk be diversified away by investing in both Palm Valley and Calamos International 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 Palm Valley and Calamos International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Palm Valley Capital and Calamos International Growth, you can compare the effects of market volatilities on Palm Valley and Calamos International 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 Palm Valley with a short position of Calamos International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Palm Valley and Calamos International.
Diversification Opportunities for Palm Valley and Calamos International
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Palm and Calamos is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Palm Valley Capital and Calamos International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos International and Palm Valley 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 Palm Valley Capital are associated (or correlated) with Calamos International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos International has no effect on the direction of Palm Valley i.e., Palm Valley and Calamos International go up and down completely randomly.
Pair Corralation between Palm Valley and Calamos International
Assuming the 90 days horizon Palm Valley is expected to generate 3.05 times less return on investment than Calamos International. But when comparing it to its historical volatility, Palm Valley Capital is 4.7 times less risky than Calamos International. It trades about 0.1 of its potential returns per unit of risk. Calamos International Growth is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,369 in Calamos International Growth on September 15, 2024 and sell it today you would earn a total of 454.00 from holding Calamos International Growth or generate 33.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Palm Valley Capital vs. Calamos International Growth
Performance |
| Timeline |
| Palm Valley Capital |
| Calamos International |
Palm Valley and Calamos International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Palm Valley and Calamos International
The main advantage of trading using opposite Palm Valley and Calamos International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Palm Valley position performs unexpectedly, Calamos International 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 International will offset losses from the drop in Calamos International's long position.| Palm Valley vs. Simplify Interest Rate | Palm Valley vs. Standpoint Multi Asset | Palm Valley vs. Goehring Rozencwajg Resources | Palm Valley vs. The Acquirers |
| Calamos International vs. Calamos Global Growth | Calamos International vs. Calamos Growth Income | Calamos International vs. Calamos Opportunistic Value | Calamos International vs. Calamos Global Equity |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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