Correlation Between Abr 75/25 and Calamos Hedged
Can any of the company-specific risk be diversified away by investing in both Abr 75/25 and Calamos Hedged 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 Abr 75/25 and Calamos Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abr 7525 Volatility and Calamos Hedged Equity, you can compare the effects of market volatilities on Abr 75/25 and Calamos Hedged 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 Abr 75/25 with a short position of Calamos Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abr 75/25 and Calamos Hedged.
Diversification Opportunities for Abr 75/25 and Calamos Hedged
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Abr and Calamos is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Abr 7525 Volatility and Calamos Hedged Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Hedged Equity and Abr 75/25 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 Abr 7525 Volatility are associated (or correlated) with Calamos Hedged. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Hedged Equity has no effect on the direction of Abr 75/25 i.e., Abr 75/25 and Calamos Hedged go up and down completely randomly.
Pair Corralation between Abr 75/25 and Calamos Hedged
Assuming the 90 days horizon Abr 7525 Volatility is expected to generate 2.37 times more return on investment than Calamos Hedged. However, Abr 75/25 is 2.37 times more volatile than Calamos Hedged Equity. It trades about 0.13 of its potential returns per unit of risk. Calamos Hedged Equity is currently generating about 0.23 per unit of risk. If you would invest 1,010 in Abr 7525 Volatility on September 4, 2024 and sell it today you would earn a total of 116.00 from holding Abr 7525 Volatility or generate 11.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.82% |
| Values | Daily Returns |
Abr 7525 Volatility vs. Calamos Hedged Equity
Performance |
| Timeline |
| Abr 7525 Volatility |
| Calamos Hedged Equity |
Abr 75/25 and Calamos Hedged Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abr 75/25 and Calamos Hedged
The main advantage of trading using opposite Abr 75/25 and Calamos Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abr 75/25 position performs unexpectedly, Calamos Hedged 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 Hedged will offset losses from the drop in Calamos Hedged's long position.The idea behind Abr 7525 Volatility and Calamos Hedged Equity pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Calamos Hedged vs. Calamos Antetokounmpo Sustainable | Calamos Hedged vs. Innealta Capital Sector | Calamos Hedged vs. Calamos Antetokounmpo Sustainable | Calamos Hedged 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |