Correlation Between American Beacon and Calamos Hedged
Can any of the company-specific risk be diversified away by investing in both American Beacon and Calamos Hedged 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 American Beacon and Calamos Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Beacon Soundpointfltrtinc and Calamos Hedged Equity, you can compare the effects of market volatilities on American Beacon and Calamos Hedged 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 American Beacon with a short position of Calamos Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Beacon and Calamos Hedged.
Diversification Opportunities for American Beacon and Calamos Hedged
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between American and Calamos is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding American Beacon Soundpointfltr and Calamos Hedged Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Hedged Equity and American Beacon 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 American Beacon Soundpointfltrtinc are associated (or correlated) with Calamos Hedged. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Hedged Equity has no effect on the direction of American Beacon i.e., American Beacon and Calamos Hedged go up and down completely randomly.
Pair Corralation between American Beacon and Calamos Hedged
Assuming the 90 days horizon American Beacon Soundpointfltrtinc is expected to under-perform the Calamos Hedged. But the mutual fund apears to be less risky and, when comparing its historical volatility, American Beacon Soundpointfltrtinc is 2.86 times less risky than Calamos Hedged. The mutual fund trades about -0.08 of its potential returns per unit of risk. The Calamos Hedged Equity is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 1,703 in Calamos Hedged Equity on September 1, 2024 and sell it today you would earn a total of 51.00 from holding Calamos Hedged Equity or generate 2.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
American Beacon Soundpointfltr vs. Calamos Hedged Equity
Performance |
| Timeline |
| American Beacon Soun |
| Calamos Hedged Equity |
American Beacon and Calamos Hedged Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Beacon and Calamos Hedged
The main advantage of trading using opposite American Beacon and Calamos Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Beacon position performs unexpectedly, Calamos Hedged 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 Hedged will offset losses from the drop in Calamos Hedged's long position.| American Beacon vs. American Beacon Ssi | American Beacon vs. American Beacon Bridgeway | American Beacon vs. American Beacon Bridgeway | American Beacon vs. American Beacon Twentyfour |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |