Correlation Between Nasdaq 100 and Calamos Market
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 and Calamos Market 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 Nasdaq 100 and Calamos Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 2x Strategy and Calamos Market Neutral, you can compare the effects of market volatilities on Nasdaq 100 and Calamos Market 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 Nasdaq 100 with a short position of Calamos Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Calamos Market.
Diversification Opportunities for Nasdaq 100 and Calamos Market
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nasdaq and Calamos is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 2x Strategy and Calamos Market Neutral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Market Neutral and Nasdaq 100 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 Nasdaq 100 2x Strategy are associated (or correlated) with Calamos Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Market Neutral has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and Calamos Market go up and down completely randomly.
Pair Corralation between Nasdaq 100 and Calamos Market
Assuming the 90 days horizon Nasdaq 100 2x Strategy is expected to generate 20.82 times more return on investment than Calamos Market. However, Nasdaq 100 is 20.82 times more volatile than Calamos Market Neutral. It trades about 0.23 of its potential returns per unit of risk. Calamos Market Neutral is currently generating about 0.34 per unit of risk. If you would invest 38,210 in Nasdaq 100 2x Strategy on September 3, 2024 and sell it today you would earn a total of 3,524 from holding Nasdaq 100 2x Strategy or generate 9.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 2x Strategy vs. Calamos Market Neutral
Performance |
| Timeline |
| Nasdaq 100 2x |
| Calamos Market Neutral |
Nasdaq 100 and Calamos Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq 100 and Calamos Market
The main advantage of trading using opposite Nasdaq 100 and Calamos Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 position performs unexpectedly, Calamos Market 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 Market will offset losses from the drop in Calamos Market's long position.| Nasdaq 100 vs. The Hartford Emerging | Nasdaq 100 vs. Kinetics Market Opportunities | Nasdaq 100 vs. Morgan Stanley Emerging | Nasdaq 100 vs. Locorr Market Trend |
| Calamos Market vs. Arrow Managed Futures | Calamos Market vs. Nasdaq 100 2x Strategy | Calamos Market vs. The Emerging Markets | Calamos Market vs. T Rowe Price |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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