Correlation Between Calamos Market and Oppenheimer Target

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

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

Diversification Opportunities for Calamos Market and Oppenheimer Target

-0.34

Correlation Coefficient

Calamos Market  Oppenheimer Target

Very good diversification

The 3 months correlation between Calamos and Oppenheimer is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Oppenheimer Target in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Target and Calamos Market 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 Market Neutral are associated (or correlated) with Oppenheimer Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Target has no effect on the direction of Calamos Market i.e., Calamos Market and Oppenheimer Target go up and down completely randomly.

Pair Corralation between Calamos Market and Oppenheimer Target

Assuming the 90 days horizon Calamos Market Neutral is expected to generate 0.06 times more return on investment than Oppenheimer Target. However, Calamos Market Neutral is 17.07 times less risky than Oppenheimer Target. It trades about 0.27 of its potential returns per unit of risk. Oppenheimer Target is currently generating about -0.09 per unit of risk. If you would invest  1,490  in Calamos Market Neutral on December 2, 2024 and sell it today you would earn a total of  22.00  from holding Calamos Market Neutral or generate 1.48% return on investment over 90 days.

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

Calamos Market Neutral  vs.  Oppenheimer Target

Calamos Market Neutral

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Market Neutral are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Calamos Market is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Oppenheimer Target

Risk-Adjusted Performance

Very Weak

Over the last 90 days Oppenheimer Target has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Calamos Market and Oppenheimer Target

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

The idea behind Calamos Market Neutral and Oppenheimer Target 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..