Correlation Between Wasatch Small and Calamos High
Can any of the company-specific risk be diversified away by investing in both Wasatch Small and Calamos High 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 Wasatch Small and Calamos High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wasatch Small Cap and Calamos High Income, you can compare the effects of market volatilities on Wasatch Small and Calamos High 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 Wasatch Small with a short position of Calamos High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wasatch Small and Calamos High.
Diversification Opportunities for Wasatch Small and Calamos High
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wasatch and Calamos is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Wasatch Small Cap and Calamos High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos High Income and Wasatch 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 Wasatch Small Cap are associated (or correlated) with Calamos High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos High Income has no effect on the direction of Wasatch Small i.e., Wasatch Small and Calamos High go up and down completely randomly.
Pair Corralation between Wasatch Small and Calamos High
Assuming the 90 days horizon Wasatch Small Cap is expected to under-perform the Calamos High. In addition to that, Wasatch Small is 18.64 times more volatile than Calamos High Income. It trades about -0.08 of its total potential returns per unit of risk. Calamos High Income is currently generating about 0.13 per unit of volatility. If you would invest 782.00 in Calamos High Income on September 13, 2024 and sell it today you would earn a total of 6.00 from holding Calamos High Income or generate 0.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wasatch Small Cap vs. Calamos High Income
Performance |
| Timeline |
| Wasatch Small Cap |
| Calamos High Income |
Wasatch Small and Calamos High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wasatch Small and Calamos High
The main advantage of trading using opposite Wasatch Small and Calamos High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wasatch Small position performs unexpectedly, Calamos High 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 High will offset losses from the drop in Calamos High's long position.| Wasatch Small vs. Highland Longshort Healthcare | Wasatch Small vs. The Gabelli Healthcare | Wasatch Small vs. Blackrock Health Sciences | Wasatch Small vs. Baillie Gifford Health |
| Calamos High vs. Nasdaq 100 Index Fund | Calamos High vs. L Abbett Fundamental | Calamos High vs. Rbb Fund | Calamos High vs. Multimedia Portfolio Multimedia |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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