Correlation Between Nasdaq 100 and Calamos High
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 and Calamos High 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 Nasdaq 100 and Calamos High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 Index Fund and Calamos High Income, you can compare the effects of market volatilities on Nasdaq 100 and Calamos High 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 Nasdaq 100 with a short position of Calamos High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Calamos High.
Diversification Opportunities for Nasdaq 100 and Calamos High
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nasdaq and Calamos is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Index Fund and Calamos High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos High Income and Nasdaq 100 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 Nasdaq 100 Index Fund are associated (or correlated) with Calamos High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos High Income has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and Calamos High go up and down completely randomly.
Pair Corralation between Nasdaq 100 and Calamos High
Assuming the 90 days horizon Nasdaq 100 Index Fund is expected to generate 6.87 times more return on investment than Calamos High. However, Nasdaq 100 is 6.87 times more volatile than Calamos High Income. It trades about 0.1 of its potential returns per unit of risk. Calamos High Income is currently generating about 0.22 per unit of risk. If you would invest 4,205 in Nasdaq 100 Index Fund on September 14, 2024 and sell it today you would earn a total of 1,231 from holding Nasdaq 100 Index Fund or generate 29.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
Nasdaq 100 Index Fund vs. Calamos High Income
Performance |
| Timeline |
| Nasdaq 100 Index |
| Calamos High Income |
Nasdaq 100 and Calamos High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq 100 and Calamos High
The main advantage of trading using opposite Nasdaq 100 and Calamos High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 position performs unexpectedly, Calamos High 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 High will offset losses from the drop in Calamos High's long position.| Nasdaq 100 vs. Qs Large Cap | Nasdaq 100 vs. Lord Abbett Affiliated | Nasdaq 100 vs. Dunham Large Cap | Nasdaq 100 vs. Dodge Cox Stock |
| Calamos High vs. Calamos Antetokounmpo Sustainable | Calamos High vs. Innealta Capital Sector | Calamos High vs. Calamos Antetokounmpo Sustainable | Calamos High vs. Calamos Antetokounmpo Sustainable |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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