Correlation Between Vanguard Small and Calamos Alternative
Can any of the company-specific risk be diversified away by investing in both Vanguard Small and Calamos Alternative 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 Vanguard Small and Calamos Alternative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Small Cap Growth and Calamos Alternative Nasdaq, you can compare the effects of market volatilities on Vanguard Small and Calamos Alternative 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 Vanguard Small with a short position of Calamos Alternative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Small and Calamos Alternative.
Diversification Opportunities for Vanguard Small and Calamos Alternative
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Vanguard and Calamos is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Small Cap Growth and Calamos Alternative Nasdaq in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Alternative and Vanguard Small 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 Vanguard Small Cap Growth are associated (or correlated) with Calamos Alternative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Alternative has no effect on the direction of Vanguard Small i.e., Vanguard Small and Calamos Alternative go up and down completely randomly.
Pair Corralation between Vanguard Small and Calamos Alternative
Considering the 90-day investment horizon Vanguard Small is expected to generate 2.68 times less return on investment than Calamos Alternative. In addition to that, Vanguard Small is 1.39 times more volatile than Calamos Alternative Nasdaq. It trades about 0.06 of its total potential returns per unit of risk. Calamos Alternative Nasdaq is currently generating about 0.24 per unit of volatility. If you would invest 2,763 in Calamos Alternative Nasdaq on September 12, 2024 and sell it today you would earn a total of 109.00 from holding Calamos Alternative Nasdaq or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Small Cap Growth vs. Calamos Alternative Nasdaq
Performance |
| Timeline |
| Vanguard Small Cap |
| Calamos Alternative |
Vanguard Small and Calamos Alternative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Small and Calamos Alternative
The main advantage of trading using opposite Vanguard Small and Calamos Alternative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Small position performs unexpectedly, Calamos Alternative 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 Alternative will offset losses from the drop in Calamos Alternative's long position.| Vanguard Small vs. Vanguard Mid Cap Growth | Vanguard Small vs. Vanguard Small Cap Value | Vanguard Small vs. Vanguard Mid Cap Value | Vanguard Small vs. Vanguard Growth Index |
| Calamos Alternative vs. iShares Core Growth | Calamos Alternative vs. Alpha Architect Gdsdn | Calamos Alternative vs. STF Tactical Growth | Calamos Alternative vs. Collaborative Investment Series |
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 CEOs Directory module to screen CEOs from public companies around the world.
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