Correlation Between Calamos Market and Otter Creek

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

Diversification Opportunities for Calamos Market and Otter Creek

0.0

Correlation Coefficient

Calamos Market  Otter Creek

Pay attention - limited upside

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

Pair Corralation between Calamos Market and Otter Creek

If you would invest  1,510  in Calamos Market Neutral on December 20, 2024 and sell it today you would earn a total of  16.00  from holding Calamos Market Neutral or generate 1.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.69%
Values	Daily Returns

Calamos Market Neutral  vs.  Otter Creek Longshort

Calamos Market Neutral

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Market Neutral are ranked lower than 8 (%) 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.

Otter Creek Longshort

Risk-Adjusted Performance

Very Weak

Over the last 90 days Otter Creek Longshort has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Otter Creek 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 Market and Otter Creek

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

The idea behind Calamos Market Neutral and Otter Creek Longshort 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.