Two Equities Correlation Analysis
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CVAAX
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This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.
Diversification Opportunities for Calamos Opportunistic and NYSE Composite
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and NYSE is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Opportunistic Value and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Calamos Opportunistic 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 Opportunistic Value are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Calamos Opportunistic i.e., Calamos Opportunistic and NYSE Composite go up and down completely randomly.
Pair Corralation between Calamos Opportunistic and NYSE Composite
Assuming the 90 days horizon Calamos Opportunistic Value is expected to under-perform the NYSE Composite. In addition to that, Calamos Opportunistic is 1.12 times more volatile than NYSE Composite. It trades about -0.18 of its total potential returns per unit of risk. NYSE Composite is currently generating about -0.11 per unit of volatility. If you would invest 1,807,715 in NYSE Composite on January 25, 2024 and sell it today you would lose (31,907) from holding NYSE Composite or give up 1.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Opportunistic Value vs. NYSE Composite
Performance |
| Timeline |
Calamos Opportunistic and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
Calamos Opportunistic Value
Pair trading matchups for Calamos Opportunistic
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Calamos Opportunistic and NYSE Composite
The main advantage of trading using opposite Calamos Opportunistic and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Opportunistic position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.The idea behind Calamos Opportunistic Value and NYSE Composite 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.| NYSE Composite vs. Aduro Clean Technologies | NYSE Composite vs. Transphorm Technology | NYSE Composite vs. Advanced Micro Devices | NYSE Composite vs. IPG Photonics |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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