Correlation Between Bbh Limited and Calamos Hedged
Can any of the company-specific risk be diversified away by investing in both Bbh Limited and Calamos Hedged 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 Bbh Limited and Calamos Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bbh Limited Duration and Calamos Hedged Equity, you can compare the effects of market volatilities on Bbh Limited and Calamos Hedged 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 Bbh Limited with a short position of Calamos Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Limited and Calamos Hedged.
Diversification Opportunities for Bbh Limited and Calamos Hedged
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bbh and Calamos is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Limited Duration and Calamos Hedged Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Hedged Equity and Bbh Limited 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 Bbh Limited Duration are associated (or correlated) with Calamos Hedged. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Hedged Equity has no effect on the direction of Bbh Limited i.e., Bbh Limited and Calamos Hedged go up and down completely randomly.
Pair Corralation between Bbh Limited and Calamos Hedged
Assuming the 90 days horizon Bbh Limited Duration is expected to generate 0.17 times more return on investment than Calamos Hedged. However, Bbh Limited Duration is 6.02 times less risky than Calamos Hedged. It trades about 0.23 of its potential returns per unit of risk. Calamos Hedged Equity is currently generating about -0.05 per unit of risk. If you would invest 1,031 in Bbh Limited Duration on December 28, 2024 and sell it today you would earn a total of 14.00 from holding Bbh Limited Duration or generate 1.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bbh Limited Duration vs. Calamos Hedged Equity
Performance |
Timeline |
Bbh Limited Duration |
Calamos Hedged Equity |
Bbh Limited and Calamos Hedged Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bbh Limited and Calamos Hedged
The main advantage of trading using opposite Bbh Limited and Calamos Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Limited position performs unexpectedly, Calamos Hedged 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 Hedged will offset losses from the drop in Calamos Hedged's long position.Bbh Limited vs. Bbh Partner Fund | Bbh Limited vs. Bbh Limited Duration | Bbh Limited vs. Clarkston Partners Fund | Bbh Limited vs. Bbh Intermediate Municipal |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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