Correlation Between Visa and Calamos Investment
Can any of the company-specific risk be diversified away by investing in both Visa and Calamos Investment 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 Visa and Calamos Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visa Class A and Calamos Investment Trust, you can compare the effects of market volatilities on Visa and Calamos Investment 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 Visa with a short position of Calamos Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Calamos Investment.
Diversification Opportunities for Visa and Calamos Investment
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Visa and Calamos is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Calamos Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Investment Trust and Visa 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 Visa Class A are associated (or correlated) with Calamos Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Investment Trust has no effect on the direction of Visa i.e., Visa and Calamos Investment go up and down completely randomly.
Pair Corralation between Visa and Calamos Investment
Taking into account the 90-day investment horizon Visa Class A is expected to generate 2.64 times more return on investment than Calamos Investment. However, Visa is 2.64 times more volatile than Calamos Investment Trust. It trades about 0.09 of its potential returns per unit of risk. Calamos Investment Trust is currently generating about 0.02 per unit of risk. If you would invest 23,713 in Visa Class A on September 12, 2024 and sell it today you would earn a total of 7,692 from holding Visa Class A or generate 32.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.24% |
| Values | Daily Returns |
Visa Class A vs. Calamos Investment Trust
Performance |
| Timeline |
| Visa Class A |
| Calamos Investment Trust |
Visa and Calamos Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Calamos Investment
The main advantage of trading using opposite Visa and Calamos Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Calamos Investment 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 Investment will offset losses from the drop in Calamos Investment's long position.| Visa vs. American Express | Visa vs. Capital One Financial | Visa vs. Upstart Holdings | Visa vs. Ally Financial |
| Calamos Investment vs. Praxis Growth Index | Calamos Investment vs. T Rowe Price | Calamos Investment vs. Pace Smallmedium Growth | Calamos Investment vs. Champlain Mid Cap |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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