Correlation Between Aqr Sustainable and Calamos High
Can any of the company-specific risk be diversified away by investing in both Aqr Sustainable and Calamos High 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 Aqr Sustainable and Calamos High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Sustainable Long Short and Calamos High Income, you can compare the effects of market volatilities on Aqr Sustainable and Calamos High 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 Aqr Sustainable with a short position of Calamos High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Sustainable and Calamos High.
Diversification Opportunities for Aqr Sustainable and Calamos High
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aqr and Calamos is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Sustainable Long Short and Calamos High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos High Income and Aqr Sustainable 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 Aqr Sustainable Long Short are associated (or correlated) with Calamos High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos High Income has no effect on the direction of Aqr Sustainable i.e., Aqr Sustainable and Calamos High go up and down completely randomly.
Pair Corralation between Aqr Sustainable and Calamos High
Assuming the 90 days horizon Aqr Sustainable Long Short is expected to generate 3.09 times more return on investment than Calamos High. However, Aqr Sustainable is 3.09 times more volatile than Calamos High Income. It trades about 0.15 of its potential returns per unit of risk. Calamos High Income is currently generating about 0.43 per unit of risk. If you would invest 1,324 in Aqr Sustainable Long Short on October 23, 2024 and sell it today you would earn a total of 18.00 from holding Aqr Sustainable Long Short or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Sustainable Long Short vs. Calamos High Income
Performance |
| Timeline |
| Aqr Sustainable Long |
| Calamos High Income |
Aqr Sustainable and Calamos High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Sustainable and Calamos High
The main advantage of trading using opposite Aqr Sustainable and Calamos High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Sustainable position performs unexpectedly, Calamos High 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 High will offset losses from the drop in Calamos High's long position.| Aqr Sustainable vs. Lord Abbett Short | Aqr Sustainable vs. Msift High Yield | Aqr Sustainable vs. Pace High Yield | Aqr Sustainable vs. City National Rochdale |
| Calamos High vs. Pgim Jennison Technology | Calamos High vs. Technology Ultrasector Profund | Calamos High vs. Global Technology Portfolio | Calamos High vs. Red Oak Technology |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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