Correlation Between Health Biotchnology and Calamos Market
Can any of the company-specific risk be diversified away by investing in both Health Biotchnology 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 Health Biotchnology and Calamos Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Health Biotchnology Portfolio and Calamos Market Neutral, you can compare the effects of market volatilities on Health Biotchnology 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 Health Biotchnology with a short position of Calamos Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Health Biotchnology and Calamos Market.
Diversification Opportunities for Health Biotchnology and Calamos Market
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Health and Calamos is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Health Biotchnology Portfolio 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 Health Biotchnology 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 Health Biotchnology Portfolio 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 Health Biotchnology i.e., Health Biotchnology and Calamos Market go up and down completely randomly.
Pair Corralation between Health Biotchnology and Calamos Market
Assuming the 90 days horizon Health Biotchnology Portfolio is expected to under-perform the Calamos Market. In addition to that, Health Biotchnology is 7.9 times more volatile than Calamos Market Neutral. It trades about -0.11 of its total potential returns per unit of risk. Calamos Market Neutral is currently generating about 0.3 per unit of volatility. If you would invest 1,480 in Calamos Market Neutral on September 12, 2024 and sell it today you would earn a total of 27.00 from holding Calamos Market Neutral or generate 1.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Health Biotchnology Portfolio vs. Calamos Market Neutral
Performance |
Timeline |
Health Biotchnology |
Calamos Market Neutral |
Health Biotchnology and Calamos Market Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Health Biotchnology and Calamos Market
The main advantage of trading using opposite Health Biotchnology and Calamos Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Health Biotchnology 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.Health Biotchnology vs. Vanguard Health Care | Health Biotchnology vs. Vanguard Health Care | Health Biotchnology vs. T Rowe Price | Health Biotchnology vs. T Rowe Price |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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