Correlation Between Pear Tree and Calamos Evolving
Can any of the company-specific risk be diversified away by investing in both Pear Tree and Calamos Evolving 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 Pear Tree and Calamos Evolving into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pear Tree Polaris and Calamos Evolving World, you can compare the effects of market volatilities on Pear Tree and Calamos Evolving 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 Pear Tree with a short position of Calamos Evolving. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pear Tree and Calamos Evolving.
Diversification Opportunities for Pear Tree and Calamos Evolving
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pear and Calamos is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Pear Tree Polaris and Calamos Evolving World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Evolving World and Pear Tree 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 Pear Tree Polaris are associated (or correlated) with Calamos Evolving. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Evolving World has no effect on the direction of Pear Tree i.e., Pear Tree and Calamos Evolving go up and down completely randomly.
Pair Corralation between Pear Tree and Calamos Evolving
Assuming the 90 days horizon Pear Tree is expected to generate 1.88 times less return on investment than Calamos Evolving. But when comparing it to its historical volatility, Pear Tree Polaris is 1.07 times less risky than Calamos Evolving. It trades about 0.03 of its potential returns per unit of risk. Calamos Evolving World is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,590 in Calamos Evolving World on August 31, 2024 and sell it today you would earn a total of 338.00 from holding Calamos Evolving World or generate 21.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Pear Tree Polaris vs. Calamos Evolving World
Performance |
| Timeline |
| Pear Tree Polaris |
| Calamos Evolving World |
Pear Tree and Calamos Evolving Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pear Tree and Calamos Evolving
The main advantage of trading using opposite Pear Tree and Calamos Evolving positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pear Tree position performs unexpectedly, Calamos Evolving 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 Evolving will offset losses from the drop in Calamos Evolving's long position.| Pear Tree vs. Pear Tree Polaris | Pear Tree vs. Pear Tree Polaris | Pear Tree vs. Artisan International Value | Pear Tree vs. Rondure New World |
| Calamos Evolving vs. Pear Tree Polaris | Calamos Evolving vs. Artisan High Income | Calamos Evolving vs. HUMANA INC | Calamos Evolving vs. Aquagold International |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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