Correlation Between Upright Assets and Calamos Opportunistic

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

By analyzing existing cross correlation between Upright Assets Allocation and Calamos Opportunistic Value, you can compare the effects of market volatilities on Upright Assets 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 Upright Assets with a short position of Calamos Opportunistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Upright Assets and Calamos Opportunistic.

Diversification Opportunities for Upright Assets and Calamos Opportunistic

0.5

Correlation Coefficient

Upright Assets  Calamos Opportunistic

Very weak diversification

The 3 months correlation between Upright and Calamos is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Upright Assets Allocation and Calamos Opportunistic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Opportunistic and Upright Assets 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 Upright Assets Allocation 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 Upright Assets i.e., Upright Assets and Calamos Opportunistic go up and down completely randomly.

Pair Corralation between Upright Assets and Calamos Opportunistic

Assuming the 90 days horizon Upright Assets Allocation is expected to generate 1.54 times more return on investment than Calamos Opportunistic. However, Upright Assets is 1.54 times more volatile than Calamos Opportunistic Value. It trades about 0.07 of its potential returns per unit of risk. Calamos Opportunistic Value is currently generating about -0.03 per unit of risk. If you would invest  1,337  in Upright Assets Allocation on October 8, 2024 and sell it today you would earn a total of  87.00  from holding Upright Assets Allocation or generate 6.51% return on investment over 90 days.

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

Upright Assets Allocation  vs.  Calamos Opportunistic Value

Upright Assets Allocation

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Upright Assets Allocation are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Upright Assets may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Calamos Opportunistic

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Upright Assets and Calamos Opportunistic

The main advantage of trading using opposite Upright Assets and Calamos Opportunistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Upright Assets 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.

The idea behind Upright Assets Allocation and Calamos Opportunistic Value 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.