Correlation Between Calamos Global and Alabama Tax-free
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Alabama Tax-free 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 Global and Alabama Tax-free into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Global Equity and Alabama Tax Free Income, you can compare the effects of market volatilities on Calamos Global and Alabama Tax-free 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 Global with a short position of Alabama Tax-free. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Alabama Tax-free.
Diversification Opportunities for Calamos Global and Alabama Tax-free
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Alabama is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Alabama Tax Free Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alabama Tax Free and Calamos Global 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 Global Equity are associated (or correlated) with Alabama Tax-free. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alabama Tax Free has no effect on the direction of Calamos Global i.e., Calamos Global and Alabama Tax-free go up and down completely randomly.
Pair Corralation between Calamos Global and Alabama Tax-free
Assuming the 90 days horizon Calamos Global Equity is expected to under-perform the Alabama Tax-free. In addition to that, Calamos Global is 4.0 times more volatile than Alabama Tax Free Income. It trades about -0.01 of its total potential returns per unit of risk. Alabama Tax Free Income is currently generating about 0.09 per unit of volatility. If you would invest 1,136 in Alabama Tax Free Income on December 2, 2024 and sell it today you would earn a total of 12.00 from holding Alabama Tax Free Income or generate 1.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Calamos Global Equity vs. Alabama Tax Free Income
Performance |
Timeline |
Calamos Global Equity |
Alabama Tax Free |
Calamos Global and Alabama Tax-free Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Calamos Global and Alabama Tax-free
The main advantage of trading using opposite Calamos Global and Alabama Tax-free positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Alabama Tax-free 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 Alabama Tax-free will offset losses from the drop in Alabama Tax-free's long position.Calamos Global vs. Ab Bond Inflation | Calamos Global vs. Doubleline E Fixed | Calamos Global vs. Intermediate Bond Fund | Calamos Global vs. Praxis Impact Bond |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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