Correlation Between Calamos Antetokounmpo and Innealta Capital

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

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

Diversification Opportunities for Calamos Antetokounmpo and Innealta Capital

1.0

Correlation Coefficient

Calamos Antetokounmpo  Innealta Capital

No risk reduction

The 3 months correlation between Calamos and Innealta is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Antetokounmpo Sustaina and Innealta Capital Sector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innealta Capital Sector and Calamos Antetokounmpo 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 Calamos Antetokounmpo Sustainable are associated (or correlated) with Innealta Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innealta Capital Sector has no effect on the direction of Calamos Antetokounmpo i.e., Calamos Antetokounmpo and Innealta Capital go up and down completely randomly.

Pair Corralation between Calamos Antetokounmpo and Innealta Capital

Assuming the 90 days horizon Calamos Antetokounmpo is expected to generate 1.19 times less return on investment than Innealta Capital. But when comparing it to its historical volatility, Calamos Antetokounmpo Sustainable is 1.01 times less risky than Innealta Capital. It trades about 0.09 of its potential returns per unit of risk. Innealta Capital Sector is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  1,253  in Innealta Capital Sector on September 12, 2024 and sell it today you would earn a total of  50.00  from holding Innealta Capital Sector or generate 3.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.44%
Values	Daily Returns

Calamos Antetokounmpo Sustaina  vs.  Innealta Capital Sector

Calamos Antetokounmpo

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Antetokounmpo Sustainable are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Calamos Antetokounmpo is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Innealta Capital Sector

Risk-Adjusted Performance

8 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Innealta Capital Sector are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. 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.

Pair Trading with Calamos Antetokounmpo and Innealta Capital

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

The idea behind Calamos Antetokounmpo Sustainable and Innealta Capital Sector 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.