Correlation Between Alliancebernstein and Calamos Evolving
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Calamos Evolving 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 Alliancebernstein and Calamos Evolving into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alliancebernstein Global Highome and Calamos Evolving World, you can compare the effects of market volatilities on Alliancebernstein and Calamos Evolving 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 Alliancebernstein with a short position of Calamos Evolving. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Calamos Evolving.
Diversification Opportunities for Alliancebernstein and Calamos Evolving
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Alliancebernstein and Calamos is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein Global Higho and Calamos Evolving World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Evolving World and Alliancebernstein 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 Alliancebernstein Global Highome are associated (or correlated) with Calamos Evolving. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Evolving World has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Calamos Evolving go up and down completely randomly.
Pair Corralation between Alliancebernstein and Calamos Evolving
Assuming the 90 days horizon Alliancebernstein Global Highome is expected to generate 0.24 times more return on investment than Calamos Evolving. However, Alliancebernstein Global Highome is 4.11 times less risky than Calamos Evolving. It trades about -0.31 of its potential returns per unit of risk. Calamos Evolving World is currently generating about -0.09 per unit of risk. If you would invest 1,144 in Alliancebernstein Global Highome on October 9, 2024 and sell it today you would lose (13.00) from holding Alliancebernstein Global Highome or give up 1.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alliancebernstein Global Higho vs. Calamos Evolving World
Performance |
| Timeline |
| Alliancebernstein |
| Calamos Evolving World |
Alliancebernstein and Calamos Evolving Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Calamos Evolving
The main advantage of trading using opposite Alliancebernstein and Calamos Evolving positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Calamos Evolving 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 Evolving will offset losses from the drop in Calamos Evolving's long position.| Alliancebernstein vs. Alliancebernstein Bond | Alliancebernstein vs. Versatile Bond Portfolio | Alliancebernstein vs. Maryland Tax Free Bond | Alliancebernstein vs. Multisector Bond Sma |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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