Correlation Between Counterpoint Tactical and Calamos Market
Can any of the company-specific risk be diversified away by investing in both Counterpoint Tactical 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 Counterpoint Tactical and Calamos Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Counterpoint Tactical Municipal and Calamos Market Neutral, you can compare the effects of market volatilities on Counterpoint Tactical 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 Counterpoint Tactical with a short position of Calamos Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Counterpoint Tactical and Calamos Market.
Diversification Opportunities for Counterpoint Tactical and Calamos Market
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Counterpoint and Calamos is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Counterpoint Tactical Municipa 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 Counterpoint Tactical 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 Counterpoint Tactical Municipal 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 Counterpoint Tactical i.e., Counterpoint Tactical and Calamos Market go up and down completely randomly.
Pair Corralation between Counterpoint Tactical and Calamos Market
Assuming the 90 days horizon Counterpoint Tactical is expected to generate 1.25 times less return on investment than Calamos Market. In addition to that, Counterpoint Tactical is 1.88 times more volatile than Calamos Market Neutral. It trades about 0.1 of its total potential returns per unit of risk. Calamos Market Neutral is currently generating about 0.23 per unit of volatility. If you would invest 1,406 in Calamos Market Neutral on August 25, 2024 and sell it today you would earn a total of 96.00 from holding Calamos Market Neutral or generate 6.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Counterpoint Tactical Municipa vs. Calamos Market Neutral
Performance |
| Timeline |
| Counterpoint Tactical |
| Calamos Market Neutral |
Counterpoint Tactical and Calamos Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Counterpoint Tactical and Calamos Market
The main advantage of trading using opposite Counterpoint Tactical and Calamos Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Counterpoint Tactical 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.| Counterpoint Tactical vs. Counterpoint Tactical Municipal | Counterpoint Tactical vs. Counterpoint Tactical Equity | Counterpoint Tactical vs. Counterpoint Tactical Equity |
| Calamos Market vs. Gamco Global Telecommunications | Calamos Market vs. Vanguard Short Term Government | Calamos Market vs. Counterpoint Tactical Municipal | Calamos Market vs. Pace Municipal Fixed |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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