Correlation Between Calamos Dividend and Innealta Capital

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

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

Diversification Opportunities for Calamos Dividend and Innealta Capital

0.72

Correlation Coefficient

Calamos Dividend  Innealta Capital

Poor diversification

The 3 months correlation between Calamos and Innealta is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dividend Growth and Innealta Capital Sector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innealta Capital Sector and Calamos Dividend 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 Calamos Dividend Growth are associated (or correlated) with Innealta Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innealta Capital Sector has no effect on the direction of Calamos Dividend i.e., Calamos Dividend and Innealta Capital go up and down completely randomly.

Pair Corralation between Calamos Dividend and Innealta Capital

Assuming the 90 days horizon Calamos Dividend Growth is expected to generate 1.17 times more return on investment than Innealta Capital. However, Calamos Dividend is 1.17 times more volatile than Innealta Capital Sector. It trades about 0.03 of its potential returns per unit of risk. Innealta Capital Sector is currently generating about 0.0 per unit of risk. If you would invest  1,869  in Calamos Dividend Growth on October 5, 2024 and sell it today you would earn a total of  27.00  from holding Calamos Dividend Growth or generate 1.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Calamos Dividend Growth  vs.  Innealta Capital Sector

Calamos Dividend Growth

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Dividend Growth are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Calamos Dividend is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Innealta Capital Sector

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Innealta Capital Sector has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Innealta Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Calamos Dividend and Innealta Capital

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

The idea behind Calamos Dividend Growth and Innealta Capital Sector 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.