Correlation Between Stone Ridge and Calamos International
Can any of the company-specific risk be diversified away by investing in both Stone Ridge 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 Stone Ridge and Calamos International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stone Ridge Diversified and Calamos International Small, you can compare the effects of market volatilities on Stone Ridge 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 Stone Ridge with a short position of Calamos International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stone Ridge and Calamos International.
Diversification Opportunities for Stone Ridge and Calamos International
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Stone and Calamos is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Stone Ridge Diversified and Calamos International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos International and Stone Ridge 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 Stone Ridge Diversified 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 Stone Ridge i.e., Stone Ridge and Calamos International go up and down completely randomly.
Pair Corralation between Stone Ridge and Calamos International
Assuming the 90 days horizon Stone Ridge is expected to generate 2.02 times less return on investment than Calamos International. But when comparing it to its historical volatility, Stone Ridge Diversified is 4.48 times less risky than Calamos International. It trades about 0.17 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 Against |
| Strength | Very Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
Stone Ridge Diversified vs. Calamos International Small
Performance |
| Timeline |
| Stone Ridge Diversified |
| Calamos International |
Stone Ridge and Calamos International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stone Ridge and Calamos International
The main advantage of trading using opposite Stone Ridge and Calamos International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stone Ridge 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.| Stone Ridge vs. Blackrock Alternative Capital | Stone Ridge vs. Aqr Style Premia | Stone Ridge vs. Goldman Sachs Absolute | Stone Ridge vs. Aquagold International |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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