Correlation Between Inverse Government and Calamos Long/short
Can any of the company-specific risk be diversified away by investing in both Inverse Government and Calamos Long/short 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 Inverse Government and Calamos Long/short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inverse Government Long and Calamos Longshort Fund, you can compare the effects of market volatilities on Inverse Government and Calamos Long/short 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 Inverse Government with a short position of Calamos Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inverse Government and Calamos Long/short.
Diversification Opportunities for Inverse Government and Calamos Long/short
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Inverse and Calamos is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Inverse Government Long and Calamos Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Long/short and Inverse Government 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 Inverse Government Long are associated (or correlated) with Calamos Long/short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Long/short has no effect on the direction of Inverse Government i.e., Inverse Government and Calamos Long/short go up and down completely randomly.
Pair Corralation between Inverse Government and Calamos Long/short
Assuming the 90 days horizon Inverse Government is expected to generate 1.03 times less return on investment than Calamos Long/short. In addition to that, Inverse Government is 1.22 times more volatile than Calamos Longshort Fund. It trades about 0.05 of its total potential returns per unit of risk. Calamos Longshort Fund is currently generating about 0.06 per unit of volatility. If you would invest 812.00 in Calamos Longshort Fund on September 3, 2024 and sell it today you would earn a total of 210.00 from holding Calamos Longshort Fund or generate 25.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inverse Government Long vs. Calamos Longshort Fund
Performance |
| Timeline |
| Inverse Government Long |
| Calamos Long/short |
Inverse Government and Calamos Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inverse Government and Calamos Long/short
The main advantage of trading using opposite Inverse Government and Calamos Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inverse Government position performs unexpectedly, Calamos Long/short 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 Long/short will offset losses from the drop in Calamos Long/short's long position.| Inverse Government vs. Dana Large Cap | Inverse Government vs. Pace Large Value | Inverse Government vs. Siit Large Cap | Inverse Government vs. American Mutual Fund |
| Calamos Long/short vs. Jennison Natural Resources | Calamos Long/short vs. Oil Gas Ultrasector | Calamos Long/short vs. Energy Basic Materials | Calamos Long/short vs. Icon Natural Resources |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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