Correlation Between CDW Corp and Calamos Opportunistic
Can any of the company-specific risk be diversified away by investing in both CDW Corp 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 CDW Corp and Calamos Opportunistic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CDW Corp and Calamos Opportunistic Value, you can compare the effects of market volatilities on CDW Corp 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 CDW Corp with a short position of Calamos Opportunistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDW Corp and Calamos Opportunistic.
Diversification Opportunities for CDW Corp and Calamos Opportunistic
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CDW and Calamos is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding CDW Corp and Calamos Opportunistic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Opportunistic and CDW Corp 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 CDW Corp 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 CDW Corp i.e., CDW Corp and Calamos Opportunistic go up and down completely randomly.
Pair Corralation between CDW Corp and Calamos Opportunistic
Considering the 90-day investment horizon CDW Corp is expected to generate 1.4 times more return on investment than Calamos Opportunistic. However, CDW Corp is 1.4 times more volatile than Calamos Opportunistic Value. It trades about 0.08 of its potential returns per unit of risk. Calamos Opportunistic Value is currently generating about 0.07 per unit of risk. If you would invest 22,911 in CDW Corp on January 26, 2024 and sell it today you would earn a total of 1,158 from holding CDW Corp or generate 5.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CDW Corp vs. Calamos Opportunistic Value
Performance |
| Timeline |
| CDW Corp |
| Calamos Opportunistic |
CDW Corp and Calamos Opportunistic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CDW Corp and Calamos Opportunistic
The main advantage of trading using opposite CDW Corp and Calamos Opportunistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDW Corp 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 CDW Corp 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.| Calamos Opportunistic vs. Calamos Opportunistic Value | Calamos Opportunistic vs. Calamos Opportunistic Value | Calamos Opportunistic vs. Calamos Growth Fund | Calamos Opportunistic vs. Calamos Growth Fund |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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