Correlation Between Guggenheim High and Calamos International
Can any of the company-specific risk be diversified away by investing in both Guggenheim High and Calamos International 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 Guggenheim High and Calamos International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guggenheim High Yield and Calamos International Small, you can compare the effects of market volatilities on Guggenheim High and Calamos International 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 Guggenheim High with a short position of Calamos International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim High and Calamos International.
Diversification Opportunities for Guggenheim High and Calamos International
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guggenheim and Calamos is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim High Yield and Calamos International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos International and Guggenheim High 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 Guggenheim High Yield are associated (or correlated) with Calamos International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos International has no effect on the direction of Guggenheim High i.e., Guggenheim High and Calamos International go up and down completely randomly.
Pair Corralation between Guggenheim High and Calamos International
Assuming the 90 days horizon Guggenheim High is expected to generate 1.77 times less return on investment than Calamos International. But when comparing it to its historical volatility, Guggenheim High Yield is 4.11 times less risky than Calamos International. It trades about 0.18 of its potential returns per unit of risk. Calamos International Small is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 806.00 in Calamos International Small on September 12, 2024 and sell it today you would earn a total of 202.00 from holding Calamos International Small or generate 25.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.7% |
| Values | Daily Returns |
Guggenheim High Yield vs. Calamos International Small
Performance |
| Timeline |
| Guggenheim High Yield |
| Calamos International |
Guggenheim High and Calamos International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim High and Calamos International
The main advantage of trading using opposite Guggenheim High and Calamos International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim High position performs unexpectedly, Calamos International 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 International will offset losses from the drop in Calamos International's long position.The idea behind Guggenheim High Yield and Calamos International Small pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |