Correlation Between Tekla Healthcare and Calamos Strategic

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

By analyzing existing cross correlation between Tekla Healthcare Investors and Calamos Strategic Total, you can compare the effects of market volatilities on Tekla Healthcare and Calamos Strategic 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 Tekla Healthcare with a short position of Calamos Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekla Healthcare and Calamos Strategic.

Diversification Opportunities for Tekla Healthcare and Calamos Strategic

0.28

Correlation Coefficient

Tekla Healthcare  Calamos Strategic

Modest diversification

The 3 months correlation between Tekla and Calamos is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Tekla Healthcare Investors and Calamos Strategic Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Strategic Total and Tekla Healthcare 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 Tekla Healthcare Investors are associated (or correlated) with Calamos Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Strategic Total has no effect on the direction of Tekla Healthcare i.e., Tekla Healthcare and Calamos Strategic go up and down completely randomly.

Pair Corralation between Tekla Healthcare and Calamos Strategic

Considering the 90-day investment horizon Tekla Healthcare Investors is expected to generate 0.96 times more return on investment than Calamos Strategic. However, Tekla Healthcare Investors is 1.04 times less risky than Calamos Strategic. It trades about 0.09 of its potential returns per unit of risk. Calamos Strategic Total is currently generating about -0.1 per unit of risk. If you would invest  1,603  in Tekla Healthcare Investors on December 25, 2024 and sell it today you would earn a total of  81.00  from holding Tekla Healthcare Investors or generate 5.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Tekla Healthcare Investors  vs.  Calamos Strategic Total

Tekla Healthcare Inv

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tekla Healthcare Investors are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Tekla Healthcare is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Calamos Strategic Total

Risk-Adjusted Performance

Very Weak

Over the last 90 days Calamos Strategic Total has generated negative risk-adjusted returns adding no value to fund investors. Even with latest inconsistent performance, the Fund's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the fund retail investors.

Pair Trading with Tekla Healthcare and Calamos Strategic

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

The idea behind Tekla Healthcare Investors and Calamos Strategic Total 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.