Correlation Between Tekla Healthcare and Calamos Market
Can any of the company-specific risk be diversified away by investing in both Tekla Healthcare 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 Tekla Healthcare and Calamos Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tekla Healthcare Opportunities and Calamos Market Neutral, you can compare the effects of market volatilities on Tekla Healthcare 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 Tekla Healthcare with a short position of Calamos Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekla Healthcare and Calamos Market.
Diversification Opportunities for Tekla Healthcare and Calamos Market
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tekla and Calamos is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Tekla Healthcare Opportunities 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 Tekla Healthcare 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 Tekla Healthcare Opportunities 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 Tekla Healthcare i.e., Tekla Healthcare and Calamos Market go up and down completely randomly.
Pair Corralation between Tekla Healthcare and Calamos Market
Considering the 90-day investment horizon Tekla Healthcare Opportunities is expected to under-perform the Calamos Market. In addition to that, Tekla Healthcare is 16.34 times more volatile than Calamos Market Neutral. It trades about -0.17 of its total potential returns per unit of risk. Calamos Market Neutral is currently generating about 0.27 per unit of volatility. If you would invest 1,501 in Calamos Market Neutral on September 13, 2024 and sell it today you would earn a total of 8.00 from holding Calamos Market Neutral or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tekla Healthcare Opportunities vs. Calamos Market Neutral
Performance |
| Timeline |
| Tekla Healthcare Opp |
| Calamos Market Neutral |
Tekla Healthcare and Calamos Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tekla Healthcare and Calamos Market
The main advantage of trading using opposite Tekla Healthcare and Calamos Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekla Healthcare 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.| Tekla Healthcare vs. Tekla Healthcare Investors | Tekla Healthcare vs. Tekla Life Sciences | Tekla Healthcare vs. Cohen Steers Reit | Tekla Healthcare vs. XAI Octagon Floating |
| Calamos Market vs. Amg River Road | Calamos Market vs. Great West Loomis Sayles | Calamos Market vs. Ab Small Cap | Calamos Market vs. Fpa Queens Road |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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