Correlation Between Touchstone Sands and Calamos Market
Can any of the company-specific risk be diversified away by investing in both Touchstone Sands and Calamos Market 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 Touchstone Sands and Calamos Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Touchstone Sands Capital and Calamos Market Neutral, you can compare the effects of market volatilities on Touchstone Sands and Calamos Market 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 Touchstone Sands with a short position of Calamos Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone Sands and Calamos Market.
Diversification Opportunities for Touchstone Sands and Calamos Market
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Touchstone and Calamos is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone Sands Capital and Calamos Market Neutral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Market Neutral and Touchstone Sands 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 Touchstone Sands Capital are associated (or correlated) with Calamos Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Market Neutral has no effect on the direction of Touchstone Sands i.e., Touchstone Sands and Calamos Market go up and down completely randomly.
Pair Corralation between Touchstone Sands and Calamos Market
Assuming the 90 days horizon Touchstone Sands Capital is expected to under-perform the Calamos Market. In addition to that, Touchstone Sands is 7.17 times more volatile than Calamos Market Neutral. It trades about -0.18 of its total potential returns per unit of risk. Calamos Market Neutral is currently generating about 0.33 per unit of volatility. If you would invest 1,496 in Calamos Market Neutral on September 4, 2024 and sell it today you would earn a total of 11.00 from holding Calamos Market Neutral or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone Sands Capital vs. Calamos Market Neutral
Performance |
| Timeline |
| Touchstone Sands Capital |
| Calamos Market Neutral |
Touchstone Sands and Calamos Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone Sands and Calamos Market
The main advantage of trading using opposite Touchstone Sands and Calamos Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone Sands position performs unexpectedly, Calamos Market 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 Market will offset losses from the drop in Calamos Market's long position.| Touchstone Sands vs. Touchstone Small Cap | Touchstone Sands vs. Mid Cap Growth | Touchstone Sands vs. Mid Cap Growth | Touchstone Sands vs. Mid Cap Growth |
| Calamos Market vs. Needham Aggressive Growth | Calamos Market vs. Morningstar Aggressive Growth | Calamos Market vs. Vanguard Star Fund | Calamos Market vs. Goldman Sachs High |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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