Correlation Between Energy Basic and Calamos Longshort
Can any of the company-specific risk be diversified away by investing in both Energy Basic and Calamos Longshort 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 Energy Basic and Calamos Longshort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energy Basic Materials and Calamos Longshort Fund, you can compare the effects of market volatilities on Energy Basic and Calamos Longshort 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 Energy Basic with a short position of Calamos Longshort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energy Basic and Calamos Longshort.
Diversification Opportunities for Energy Basic and Calamos Longshort
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Energy and Calamos is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Energy Basic Materials and Calamos Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Longshort and Energy Basic 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 Energy Basic Materials are associated (or correlated) with Calamos Longshort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Longshort has no effect on the direction of Energy Basic i.e., Energy Basic and Calamos Longshort go up and down completely randomly.
Pair Corralation between Energy Basic and Calamos Longshort
Assuming the 90 days horizon Energy Basic is expected to generate 11.8 times less return on investment than Calamos Longshort. In addition to that, Energy Basic is 1.24 times more volatile than Calamos Longshort Fund. It trades about 0.0 of its total potential returns per unit of risk. Calamos Longshort Fund is currently generating about 0.02 per unit of volatility. If you would invest 1,029 in Calamos Longshort Fund on September 12, 2024 and sell it today you would earn a total of 6.00 from holding Calamos Longshort Fund or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Energy Basic Materials vs. Calamos Longshort Fund
Performance |
| Timeline |
| Energy Basic Materials |
| Calamos Longshort |
Energy Basic and Calamos Longshort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energy Basic and Calamos Longshort
The main advantage of trading using opposite Energy Basic and Calamos Longshort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energy Basic position performs unexpectedly, Calamos Longshort 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 Longshort will offset losses from the drop in Calamos Longshort's long position.| Energy Basic vs. Artisan Thematic Fund | Energy Basic vs. T Rowe Price | Energy Basic vs. L Abbett Fundamental | Energy Basic vs. Auer Growth Fund |
| Calamos Longshort vs. Smallcap Growth Fund | Calamos Longshort vs. T Rowe Price | Calamos Longshort vs. L Abbett Growth | Calamos Longshort vs. Qs Moderate Growth |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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