Correlation Between Access Capital and Calamos Strategic

Can any of the company-specific risk be diversified away by investing in both Access Capital and Calamos Strategic 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 Access Capital and Calamos Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Access Capital Munity and Calamos Strategic Total, you can compare the effects of market volatilities on Access Capital and Calamos Strategic 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 Access Capital with a short position of Calamos Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Access Capital and Calamos Strategic.

Diversification Opportunities for Access Capital and Calamos Strategic

-0.59

Correlation Coefficient

Access Capital  Calamos Strategic

Excellent diversification

The 3 months correlation between Access and Calamos is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Access Capital Munity and Calamos Strategic Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Strategic Total and Access Capital 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 Access Capital Munity are associated (or correlated) with Calamos Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Strategic Total has no effect on the direction of Access Capital i.e., Access Capital and Calamos Strategic go up and down completely randomly.

Pair Corralation between Access Capital and Calamos Strategic

Assuming the 90 days horizon Access Capital Munity is expected to generate 0.33 times more return on investment than Calamos Strategic. However, Access Capital Munity is 3.05 times less risky than Calamos Strategic. It trades about 0.15 of its potential returns per unit of risk. Calamos Strategic Total is currently generating about -0.1 per unit of risk. If you would invest  744.00  in Access Capital Munity on December 22, 2024 and sell it today you would earn a total of  23.00  from holding Access Capital Munity or generate 3.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Access Capital Munity  vs.  Calamos Strategic Total

Access Capital Munity

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Access Capital Munity are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Access Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Calamos Strategic Total

Risk-Adjusted Performance

Very Weak

Over the last 90 days Calamos Strategic Total has generated negative risk-adjusted returns adding no value to fund investors. Even with relatively invariable basic indicators, Calamos Strategic is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Access Capital and Calamos Strategic

The main advantage of trading using opposite Access Capital and Calamos Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Access Capital position performs unexpectedly, Calamos Strategic 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 Strategic will offset losses from the drop in Calamos Strategic's long position.

The idea behind Access Capital Munity and Calamos Strategic Total 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.

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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.