Correlation Between Dreyfus Select and Calamos Market
Can any of the company-specific risk be diversified away by investing in both Dreyfus Select and Calamos Market 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 Dreyfus Select and Calamos Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus Select Managers and Calamos Market Neutral, you can compare the effects of market volatilities on Dreyfus Select and Calamos Market 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 Dreyfus Select with a short position of Calamos Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Select and Calamos Market.
Diversification Opportunities for Dreyfus Select and Calamos Market
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dreyfus and Calamos is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Select Managers and Calamos Market Neutral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Market Neutral and Dreyfus Select 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 Dreyfus Select Managers are associated (or correlated) with Calamos Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Market Neutral has no effect on the direction of Dreyfus Select i.e., Dreyfus Select and Calamos Market go up and down completely randomly.
Pair Corralation between Dreyfus Select and Calamos Market
If you would invest 1,476 in Calamos Market Neutral on September 10, 2024 and sell it today you would earn a total of 33.00 from holding Calamos Market Neutral or generate 2.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 1.56% |
Values | Daily Returns |
Dreyfus Select Managers vs. Calamos Market Neutral
Performance |
Timeline |
Dreyfus Select Managers |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Calamos Market Neutral |
Dreyfus Select and Calamos Market Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dreyfus Select and Calamos Market
The main advantage of trading using opposite Dreyfus Select and Calamos Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Select position performs unexpectedly, Calamos Market 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 Calamos Market will offset losses from the drop in Calamos Market's long position.Dreyfus Select vs. Balanced Allocation Fund | Dreyfus Select vs. Pace Large Growth | Dreyfus Select vs. Tax Managed Large Cap | Dreyfus Select vs. Guidemark Large Cap |
Calamos Market vs. Calamos Market Neutral | Calamos Market vs. Calamos Market Neutral | Calamos Market vs. Aqr Diversified Arbitrage | Calamos Market vs. Absolute Convertible Arbitrage |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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