Correlation Between Pace International and Calamos Opportunistic
Can any of the company-specific risk be diversified away by investing in both Pace International and Calamos Opportunistic 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 Pace International and Calamos Opportunistic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pace International Emerging and Calamos Opportunistic Value, you can compare the effects of market volatilities on Pace International and Calamos Opportunistic 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 Pace International with a short position of Calamos Opportunistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pace International and Calamos Opportunistic.
Diversification Opportunities for Pace International and Calamos Opportunistic
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pace and Calamos is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Pace International Emerging and Calamos Opportunistic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Opportunistic and Pace International 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 Pace International Emerging are associated (or correlated) with Calamos Opportunistic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Opportunistic has no effect on the direction of Pace International i.e., Pace International and Calamos Opportunistic go up and down completely randomly.
Pair Corralation between Pace International and Calamos Opportunistic
Assuming the 90 days horizon Pace International is expected to generate 3.03 times less return on investment than Calamos Opportunistic. In addition to that, Pace International is 1.05 times more volatile than Calamos Opportunistic Value. It trades about 0.03 of its total potential returns per unit of risk. Calamos Opportunistic Value is currently generating about 0.11 per unit of volatility. If you would invest 1,510 in Calamos Opportunistic Value on September 23, 2024 and sell it today you would earn a total of 794.00 from holding Calamos Opportunistic Value or generate 52.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Pace International Emerging vs. Calamos Opportunistic Value
Performance |
Timeline |
Pace International |
Calamos Opportunistic |
Pace International and Calamos Opportunistic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pace International and Calamos Opportunistic
The main advantage of trading using opposite Pace International and Calamos Opportunistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pace International position performs unexpectedly, Calamos Opportunistic 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 Opportunistic will offset losses from the drop in Calamos Opportunistic's long position.Pace International vs. Pace Smallmedium Value | Pace International vs. Pace International Equity | Pace International vs. Pace International Equity | Pace International vs. Ubs Allocation Fund |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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