Correlation Between Liberty All and Calamos Strategic
Can any of the company-specific risk be diversified away by investing in both Liberty All and Calamos Strategic 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 Liberty All and Calamos Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liberty All Star and Calamos Strategic Total, you can compare the effects of market volatilities on Liberty All and Calamos Strategic 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 Liberty All with a short position of Calamos Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty All and Calamos Strategic.
Diversification Opportunities for Liberty All and Calamos Strategic
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Liberty and Calamos is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Liberty All Star and Calamos Strategic Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Strategic Total and Liberty All 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 Liberty All Star are associated (or correlated) with Calamos Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Strategic Total has no effect on the direction of Liberty All i.e., Liberty All and Calamos Strategic go up and down completely randomly.
Pair Corralation between Liberty All and Calamos Strategic
Considering the 90-day investment horizon Liberty All is expected to generate 1.1 times less return on investment than Calamos Strategic. In addition to that, Liberty All is 1.02 times more volatile than Calamos Strategic Total. It trades about 0.1 of its total potential returns per unit of risk. Calamos Strategic Total is currently generating about 0.11 per unit of volatility. If you would invest 1,265 in Calamos Strategic Total on August 31, 2024 and sell it today you would earn a total of 549.00 from holding Calamos Strategic Total or generate 43.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liberty All Star vs. Calamos Strategic Total
Performance |
| Timeline |
| Liberty All Star |
| Calamos Strategic Total |
Liberty All and Calamos Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liberty All and Calamos Strategic
The main advantage of trading using opposite Liberty All and Calamos Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty All position performs unexpectedly, Calamos Strategic 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 Strategic will offset losses from the drop in Calamos Strategic's long position.| Liberty All vs. Adams Diversified Equity | Liberty All vs. BlackRock Science and | Liberty All vs. Virtus Allianzgi Artificial | Liberty All vs. Royce Value Closed |
| Calamos Strategic vs. Calamos Convertible Opportunities | Calamos Strategic vs. Calamos Dynamic Convertible | Calamos Strategic vs. Calamos Global Dynamic | Calamos Strategic vs. Calamos LongShort Equity |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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