Correlation Between IShares Global and Calamos Antetokounmpo

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

By analyzing existing cross correlation between iShares Global 100 and Calamos Antetokounmpo Global, you can compare the effects of market volatilities on IShares Global and Calamos Antetokounmpo 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 IShares Global with a short position of Calamos Antetokounmpo. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Global and Calamos Antetokounmpo.

Diversification Opportunities for IShares Global and Calamos Antetokounmpo

0.85

Correlation Coefficient

IShares Global  Calamos Antetokounmpo

Very poor diversification

The 3 months correlation between IShares and Calamos is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding iShares Global 100 and Calamos Antetokounmpo Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Antetokounmpo and IShares Global 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 iShares Global 100 are associated (or correlated) with Calamos Antetokounmpo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Antetokounmpo has no effect on the direction of IShares Global i.e., IShares Global and Calamos Antetokounmpo go up and down completely randomly.

Pair Corralation between IShares Global and Calamos Antetokounmpo

Considering the 90-day investment horizon iShares Global 100 is expected to under-perform the Calamos Antetokounmpo. In addition to that, IShares Global is 1.19 times more volatile than Calamos Antetokounmpo Global. It trades about -0.05 of its total potential returns per unit of risk. Calamos Antetokounmpo Global is currently generating about 0.0 per unit of volatility. If you would invest  2,913  in Calamos Antetokounmpo Global on December 28, 2024 and sell it today you would lose (3.00) from holding Calamos Antetokounmpo Global or give up 0.1% of portfolio value over 90 days.

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

iShares Global 100  vs.  Calamos Antetokounmpo Global

iShares Global 100

Risk-Adjusted Performance

Very Weak

Over the last 90 days iShares Global 100 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, IShares Global is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Calamos Antetokounmpo

Risk-Adjusted Performance

Very Weak

Over the last 90 days Calamos Antetokounmpo Global has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Calamos Antetokounmpo is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with IShares Global and Calamos Antetokounmpo

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

The idea behind iShares Global 100 and Calamos Antetokounmpo Global 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.

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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.