Correlation Between Reaves Utility and Calamos Strategic
Can any of the company-specific risk be diversified away by investing in both Reaves Utility 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 Reaves Utility and Calamos Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Reaves Utility If and Calamos Strategic Total, you can compare the effects of market volatilities on Reaves Utility 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 Reaves Utility with a short position of Calamos Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Reaves Utility and Calamos Strategic.
Diversification Opportunities for Reaves Utility and Calamos Strategic
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Reaves and Calamos is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Reaves Utility If 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 Reaves Utility 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 Reaves Utility If 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 Reaves Utility i.e., Reaves Utility and Calamos Strategic go up and down completely randomly.
Pair Corralation between Reaves Utility and Calamos Strategic
Considering the 90-day investment horizon Reaves Utility If is expected to generate 0.97 times more return on investment than Calamos Strategic. However, Reaves Utility If is 1.04 times less risky than Calamos Strategic. It trades about 0.55 of its potential returns per unit of risk. Calamos Strategic Total is currently generating about 0.33 per unit of risk. If you would invest 3,192 in Reaves Utility If on September 2, 2024 and sell it today you would earn a total of 295.00 from holding Reaves Utility If or generate 9.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Reaves Utility If vs. Calamos Strategic Total
Performance |
| Timeline |
| Reaves Utility If |
| Calamos Strategic Total |
Reaves Utility and Calamos Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Reaves Utility and Calamos Strategic
The main advantage of trading using opposite Reaves Utility and Calamos Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Reaves Utility 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.| Reaves Utility vs. Cohen Steers Reit | Reaves Utility vs. Cohen Steers Qualityome | Reaves Utility vs. Pimco Corporate Income | Reaves Utility vs. Tekla Healthcare Investors |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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