Correlation Between Innealta Capital and Calamos International

Can any of the company-specific risk be diversified away by investing in both Innealta Capital and Calamos International 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 International 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 International Small, you can compare the effects of market volatilities on Innealta Capital and Calamos International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innealta Capital and Calamos International.

Diversification Opportunities for Innealta Capital and Calamos International

0.62

Correlation Coefficient

Innealta Capital  Calamos International

Poor diversification

The 3 months correlation between Innealta and Calamos is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Innealta Capital Sector and Calamos International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos International 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 International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos International has no effect on the direction of Innealta Capital i.e., Innealta Capital and Calamos International go up and down completely randomly.

Pair Corralation between Innealta Capital and Calamos International

Assuming the 90 days horizon Innealta Capital Sector is expected to generate 0.92 times more return on investment than Calamos International. However, Innealta Capital Sector is 1.09 times less risky than Calamos International. It trades about -0.03 of its potential returns per unit of risk. Calamos International Small is currently generating about -0.14 per unit of risk. If you would invest  1,275  in Innealta Capital Sector on October 22, 2024 and sell it today you would lose (5.00) from holding Innealta Capital Sector or give up 0.39% of portfolio value over 90 days.

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

Innealta Capital Sector  vs.  Calamos International Small

Innealta Capital Sector

Risk-Adjusted Performance

0 of 100

Very Weak

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 International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Calamos International Small has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Calamos International 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 International

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

The idea behind Innealta Capital Sector and Calamos International Small 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..