Correlation Between Travelers Companies and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Calamos Growth 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 Travelers Companies and Calamos Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Travelers Companies and Calamos Growth And, you can compare the effects of market volatilities on Travelers Companies and Calamos Growth 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 Travelers Companies with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Calamos Growth.
Diversification Opportunities for Travelers Companies and Calamos Growth
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Travelers and Calamos is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Calamos Growth And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth And and Travelers Companies 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 The Travelers Companies are associated (or correlated) with Calamos Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Growth And has no effect on the direction of Travelers Companies i.e., Travelers Companies and Calamos Growth go up and down completely randomly.
Pair Corralation between Travelers Companies and Calamos Growth
Considering the 90-day investment horizon The Travelers Companies is expected to generate 1.89 times more return on investment than Calamos Growth. However, Travelers Companies is 1.89 times more volatile than Calamos Growth And. It trades about -0.04 of its potential returns per unit of risk. Calamos Growth And is currently generating about -0.08 per unit of risk. If you would invest 25,101 in The Travelers Companies on November 27, 2024 and sell it today you would lose (277.00) from holding The Travelers Companies or give up 1.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Travelers Companies vs. Calamos Growth And
Performance |
| Timeline |
| The Travelers Companies |
| Calamos Growth And |
Travelers Companies and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Calamos Growth
The main advantage of trading using opposite Travelers Companies and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Calamos Growth 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 Growth will offset losses from the drop in Calamos Growth's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Chubb | Travelers Companies vs. Cincinnati Financial | Travelers Companies vs. W R Berkley |
| Calamos Growth vs. Tiaa Cref Large Cap Growth | Calamos Growth vs. Blackrock Large Cap | Calamos Growth vs. Dodge Cox Stock | Calamos Growth vs. Legg Mason Partners |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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