Correlation Between First Internet and Calamos Opportunistic
Can any of the company-specific risk be diversified away by investing in both First Internet 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 First Internet and Calamos Opportunistic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Internet Bancorp and Calamos Opportunistic Value, you can compare the effects of market volatilities on First Internet 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 First Internet with a short position of Calamos Opportunistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Internet and Calamos Opportunistic.
Diversification Opportunities for First Internet and Calamos Opportunistic
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between First and Calamos is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding First Internet Bancorp and Calamos Opportunistic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Opportunistic and First Internet 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 First Internet Bancorp 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 First Internet i.e., First Internet and Calamos Opportunistic go up and down completely randomly.
Pair Corralation between First Internet and Calamos Opportunistic
Given the investment horizon of 90 days First Internet Bancorp is expected to under-perform the Calamos Opportunistic. In addition to that, First Internet is 3.29 times more volatile than Calamos Opportunistic Value. It trades about -0.23 of its total potential returns per unit of risk. Calamos Opportunistic Value is currently generating about -0.2 per unit of volatility. If you would invest 2,032 in Calamos Opportunistic Value on January 27, 2024 and sell it today you would lose (66.00) from holding Calamos Opportunistic Value or give up 3.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Internet Bancorp vs. Calamos Opportunistic Value
Performance |
| Timeline |
| First Internet Bancorp |
| Calamos Opportunistic |
First Internet and Calamos Opportunistic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Internet and Calamos Opportunistic
The main advantage of trading using opposite First Internet and Calamos Opportunistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Internet 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.| First Internet vs. First Capital | First Internet vs. Finward Bancorp | First Internet vs. Community West Bancshares | First Internet vs. QCR Holdings |
| 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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