Correlation Between Calamos LongShort and First Trust

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

By analyzing existing cross correlation between Calamos LongShort Equity and First Trust Mlp, you can compare the effects of market volatilities on Calamos LongShort and First Trust 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 LongShort with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos LongShort and First Trust.

Diversification Opportunities for Calamos LongShort and First Trust

0.0

Correlation Coefficient

Calamos LongShort  First Trust

Pay attention - limited upside

The 3 months correlation between Calamos and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Calamos LongShort Equity and First Trust Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Mlp and Calamos LongShort 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 LongShort Equity are associated (or correlated) with First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust Mlp has no effect on the direction of Calamos LongShort i.e., Calamos LongShort and First Trust go up and down completely randomly.

Pair Corralation between Calamos LongShort and First Trust

If you would invest  1,446  in Calamos LongShort Equity on December 27, 2024 and sell it today you would earn a total of  100.00  from holding Calamos LongShort Equity or generate 6.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Calamos LongShort Equity  vs.  First Trust Mlp

Calamos LongShort Equity

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos LongShort Equity are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, Calamos LongShort may actually be approaching a critical reversion point that can send shares even higher in April 2025.

First Trust Mlp

Risk-Adjusted Performance

Very Weak

Over the last 90 days First Trust Mlp has generated negative risk-adjusted returns adding no value to fund investors. Despite fairly strong technical and fundamental indicators, First Trust is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Calamos LongShort and First Trust

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

The idea behind Calamos LongShort Equity and First Trust Mlp 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.