Correlation Between Aquagold International and Calamos Laddered

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

By analyzing existing cross correlation between Aquagold International and Calamos Laddered SP, you can compare the effects of market volatilities on Aquagold International and Calamos Laddered 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 Aquagold International with a short position of Calamos Laddered. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Calamos Laddered.

Diversification Opportunities for Aquagold International and Calamos Laddered

-0.35

Correlation Coefficient

Aquagold International  Calamos Laddered

Very good diversification

The 3 months correlation between Aquagold and Calamos is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Calamos Laddered SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Laddered and Aquagold International 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 Aquagold International are associated (or correlated) with Calamos Laddered. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Laddered has no effect on the direction of Aquagold International i.e., Aquagold International and Calamos Laddered go up and down completely randomly.

Pair Corralation between Aquagold International and Calamos Laddered

Given the investment horizon of 90 days Aquagold International is expected to under-perform the Calamos Laddered. In addition to that, Aquagold International is 135.34 times more volatile than Calamos Laddered SP. It trades about -0.22 of its total potential returns per unit of risk. Calamos Laddered SP is currently generating about -0.02 per unit of volatility. If you would invest  2,562  in Calamos Laddered SP on October 6, 2024 and sell it today you would lose (2.00) from holding Calamos Laddered SP or give up 0.08% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Aquagold International  vs.  Calamos Laddered SP

Aquagold International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aquagold International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Calamos Laddered

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Calamos Laddered SP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Etf's basic indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the ETF venture institutional investors.

Pair Trading with Aquagold International and Calamos Laddered

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

The idea behind Aquagold International and Calamos Laddered SP 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.

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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 Positions Ratings module to 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.