Correlation Between Innealta Capital and Calamos International
Can any of the company-specific risk be diversified away by investing in both Innealta Capital 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 Innealta Capital and Calamos International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innealta Capital Sector and Calamos International Growth, you can compare the effects of market volatilities on Innealta Capital 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 Innealta Capital with a short position of Calamos International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innealta Capital and Calamos International.
Diversification Opportunities for Innealta Capital and Calamos International
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Innealta and Calamos is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Innealta Capital Sector and Calamos International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos International and Innealta Capital 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 Innealta Capital Sector 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 Innealta Capital i.e., Innealta Capital and Calamos International go up and down completely randomly.
Pair Corralation between Innealta Capital and Calamos International
Assuming the 90 days horizon Innealta Capital Sector is expected to generate 0.58 times more return on investment than Calamos International. However, Innealta Capital Sector is 1.72 times less risky than Calamos International. It trades about 0.02 of its potential returns per unit of risk. Calamos International Growth is currently generating about 0.01 per unit of risk. If you would invest 1,290 in Innealta Capital Sector on September 12, 2024 and sell it today you would earn a total of 3.00 from holding Innealta Capital Sector or generate 0.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innealta Capital Sector vs. Calamos International Growth
Performance |
| Timeline |
| Innealta Capital Sector |
| Calamos International |
Innealta Capital and Calamos International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innealta Capital and Calamos International
The main advantage of trading using opposite Innealta Capital and Calamos International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innealta Capital 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.| Innealta Capital vs. Commonwealth Global Fund | Innealta Capital vs. Issachar Fund Class | Innealta Capital vs. T Rowe Price | Innealta Capital vs. Rbb Fund |
| Calamos International vs. Lord Abbett Convertible | Calamos International vs. Advent Claymore Convertible | Calamos International vs. Rationalpier 88 Convertible | Calamos International vs. Virtus Convertible |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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