Correlation Between Innealta Capital and Calamos High

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

By analyzing existing cross correlation between Innealta Capital Sector and Calamos High Income, you can compare the effects of market volatilities on Innealta Capital and Calamos High 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 Innealta Capital with a short position of Calamos High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innealta Capital and Calamos High.

Diversification Opportunities for Innealta Capital and Calamos High

0.0

Correlation Coefficient

Innealta Capital  Calamos High

Pay attention - limited upside

The 3 months correlation between Innealta and Calamos is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Innealta Capital Sector and Calamos High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos High Income and Innealta Capital 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 Innealta Capital Sector are associated (or correlated) with Calamos High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos High Income has no effect on the direction of Innealta Capital i.e., Innealta Capital and Calamos High go up and down completely randomly.

Pair Corralation between Innealta Capital and Calamos High

If you would invest  775.00  in Calamos High Income on September 12, 2024 and sell it today you would earn a total of  13.00  from holding Calamos High Income or generate 1.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Innealta Capital Sector  vs.  Calamos High Income

Innealta Capital Sector

Risk-Adjusted Performance

0 of 100

Modest

Over the last 90 days Innealta Capital Sector has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Innealta Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Calamos High Income

Risk-Adjusted Performance

15 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos High Income are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Calamos High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Innealta Capital and Calamos High

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

The idea behind Innealta Capital Sector and Calamos High Income 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..