Correlation Between Invesco Steelpath and Calamos Hedged
Can any of the company-specific risk be diversified away by investing in both Invesco Steelpath 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 Invesco Steelpath and Calamos Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Steelpath Mlp and Calamos Hedged Equity, you can compare the effects of market volatilities on Invesco Steelpath 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 Invesco Steelpath with a short position of Calamos Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Steelpath and Calamos Hedged.
Diversification Opportunities for Invesco Steelpath and Calamos Hedged
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Invesco and Calamos is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Steelpath Mlp 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 Invesco Steelpath 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 Invesco Steelpath Mlp 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 Invesco Steelpath i.e., Invesco Steelpath and Calamos Hedged go up and down completely randomly.
Pair Corralation between Invesco Steelpath and Calamos Hedged
Assuming the 90 days horizon Invesco Steelpath Mlp is expected to generate 2.85 times more return on investment than Calamos Hedged. However, Invesco Steelpath is 2.85 times more volatile than Calamos Hedged Equity. It trades about 0.65 of its potential returns per unit of risk. Calamos Hedged Equity is currently generating about 0.32 per unit of risk. If you would invest 546.00 in Invesco Steelpath Mlp on September 1, 2024 and sell it today you would earn a total of 96.00 from holding Invesco Steelpath Mlp or generate 17.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Invesco Steelpath Mlp vs. Calamos Hedged Equity
Performance |
| Timeline |
| Invesco Steelpath Mlp |
| Calamos Hedged Equity |
Invesco Steelpath and Calamos Hedged Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Steelpath and Calamos Hedged
The main advantage of trading using opposite Invesco Steelpath and Calamos Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Steelpath 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.| Invesco Steelpath vs. Morningstar Municipal Bond | Invesco Steelpath vs. Nuveen Minnesota Municipal | Invesco Steelpath vs. T Rowe Price | Invesco Steelpath vs. Oklahoma Municipal Fund |
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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