Correlation Between BMO Long and Calamos Antetokounmpo
Can any of the company-specific risk be diversified away by investing in both BMO Long and Calamos Antetokounmpo 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 BMO Long and Calamos Antetokounmpo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BMO Long Federal and Calamos Antetokounmpo Global, you can compare the effects of market volatilities on BMO Long and Calamos Antetokounmpo 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 BMO Long with a short position of Calamos Antetokounmpo. Check out your portfolio center. Please also check ongoing floating volatility patterns of BMO Long and Calamos Antetokounmpo.
Diversification Opportunities for BMO Long and Calamos Antetokounmpo
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between BMO and Calamos is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding BMO Long Federal and Calamos Antetokounmpo Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Antetokounmpo and BMO Long 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 BMO Long Federal are associated (or correlated) with Calamos Antetokounmpo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Antetokounmpo has no effect on the direction of BMO Long i.e., BMO Long and Calamos Antetokounmpo go up and down completely randomly.
Pair Corralation between BMO Long and Calamos Antetokounmpo
Assuming the 90 days trading horizon BMO Long is expected to generate 2.37 times less return on investment than Calamos Antetokounmpo. In addition to that, BMO Long is 1.29 times more volatile than Calamos Antetokounmpo Global. It trades about 0.02 of its total potential returns per unit of risk. Calamos Antetokounmpo Global is currently generating about 0.06 per unit of volatility. If you would invest 2,585 in Calamos Antetokounmpo Global on August 26, 2024 and sell it today you would earn a total of 379.00 from holding Calamos Antetokounmpo Global or generate 14.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.4% |
| Values | Daily Returns |
BMO Long Federal vs. Calamos Antetokounmpo Global
Performance |
| Timeline |
| BMO Long Federal |
| Calamos Antetokounmpo |
BMO Long and Calamos Antetokounmpo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BMO Long and Calamos Antetokounmpo
The main advantage of trading using opposite BMO Long and Calamos Antetokounmpo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BMO Long position performs unexpectedly, Calamos Antetokounmpo 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 Antetokounmpo will offset losses from the drop in Calamos Antetokounmpo's long position.| BMO Long vs. iShares MSCI Emerging | BMO Long vs. iShares MSCI Global | BMO Long vs. iShares Core Canadian | BMO Long vs. Vanguard Total Market |
| Calamos Antetokounmpo vs. iShares MSCI Emerging | Calamos Antetokounmpo vs. BMO Long Federal | Calamos Antetokounmpo vs. iShares MSCI EAFE | Calamos Antetokounmpo vs. Vanguard Total Market |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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