Correlation Between Calamos Dividend and BOOKING

Can any of the company-specific risk be diversified away by investing in both Calamos Dividend and BOOKING 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 BOOKING 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 BOOKING HOLDINGS INC, you can compare the effects of market volatilities on Calamos Dividend and BOOKING 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 BOOKING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dividend and BOOKING.

Diversification Opportunities for Calamos Dividend and BOOKING

-0.54

Correlation Coefficient

Calamos Dividend  BOOKING

Excellent diversification

The 3 months correlation between Calamos and BOOKING is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dividend Growth and BOOKING HOLDINGS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOOKING HOLDINGS INC 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 BOOKING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOOKING HOLDINGS INC has no effect on the direction of Calamos Dividend i.e., Calamos Dividend and BOOKING go up and down completely randomly.

Pair Corralation between Calamos Dividend and BOOKING

Assuming the 90 days horizon Calamos Dividend Growth is expected to generate 1.38 times more return on investment than BOOKING. However, Calamos Dividend is 1.38 times more volatile than BOOKING HOLDINGS INC. It trades about -0.01 of its potential returns per unit of risk. BOOKING HOLDINGS INC is currently generating about -0.24 per unit of risk. If you would invest  1,966  in Calamos Dividend Growth on September 24, 2024 and sell it today you would lose (6.00) from holding Calamos Dividend Growth or give up 0.31% of portfolio value over 90 days.

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

Calamos Dividend Growth  vs.  BOOKING HOLDINGS INC

Calamos Dividend Growth

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Dividend Growth are ranked lower than 7 (%) 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.

BOOKING HOLDINGS INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BOOKING HOLDINGS INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, BOOKING 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 BOOKING

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

The idea behind Calamos Dividend Growth and BOOKING HOLDINGS INC 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.