Correlation Between PayPal Holdings and Calamos Investment
Can any of the company-specific risk be diversified away by investing in both PayPal Holdings and Calamos Investment 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 PayPal Holdings and Calamos Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PayPal Holdings and Calamos Investment Trust, you can compare the effects of market volatilities on PayPal Holdings and Calamos Investment 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 PayPal Holdings with a short position of Calamos Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of PayPal Holdings and Calamos Investment.
Diversification Opportunities for PayPal Holdings and Calamos Investment
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PayPal and Calamos is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding PayPal Holdings and Calamos Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Investment Trust and PayPal Holdings 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 PayPal Holdings are associated (or correlated) with Calamos Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Investment Trust has no effect on the direction of PayPal Holdings i.e., PayPal Holdings and Calamos Investment go up and down completely randomly.
Pair Corralation between PayPal Holdings and Calamos Investment
Given the investment horizon of 90 days PayPal Holdings is expected to generate 5.41 times more return on investment than Calamos Investment. However, PayPal Holdings is 5.41 times more volatile than Calamos Investment Trust. It trades about 0.07 of its potential returns per unit of risk. Calamos Investment Trust is currently generating about 0.02 per unit of risk. If you would invest 5,951 in PayPal Holdings on September 12, 2024 and sell it today you would earn a total of 2,925 from holding PayPal Holdings or generate 49.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 91.24% |
| Values | Daily Returns |
PayPal Holdings vs. Calamos Investment Trust
Performance |
| Timeline |
| PayPal Holdings |
| Calamos Investment Trust |
PayPal Holdings and Calamos Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PayPal Holdings and Calamos Investment
The main advantage of trading using opposite PayPal Holdings and Calamos Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PayPal Holdings position performs unexpectedly, Calamos Investment 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 Investment will offset losses from the drop in Calamos Investment's long position.| PayPal Holdings vs. American Express | PayPal Holdings vs. Capital One Financial | PayPal Holdings vs. Upstart Holdings | PayPal Holdings vs. Ally Financial |
| Calamos Investment vs. Praxis Growth Index | Calamos Investment vs. T Rowe Price | Calamos Investment vs. Pace Smallmedium Growth | Calamos Investment vs. Champlain Mid Cap |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |