Correlation Between Arbitrage Fund and Calamos Market
Can any of the company-specific risk be diversified away by investing in both Arbitrage Fund and Calamos Market 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 Arbitrage Fund and Calamos Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Arbitrage Fund and Calamos Market Neutral, you can compare the effects of market volatilities on Arbitrage Fund and Calamos Market 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 Arbitrage Fund with a short position of Calamos Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arbitrage Fund and Calamos Market.
Diversification Opportunities for Arbitrage Fund and Calamos Market
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Arbitrage and Calamos is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding The Arbitrage Fund and Calamos Market Neutral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Market Neutral and Arbitrage Fund 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 The Arbitrage Fund are associated (or correlated) with Calamos Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Market Neutral has no effect on the direction of Arbitrage Fund i.e., Arbitrage Fund and Calamos Market go up and down completely randomly.
Pair Corralation between Arbitrage Fund and Calamos Market
Assuming the 90 days horizon Arbitrage Fund is expected to generate 3.34 times less return on investment than Calamos Market. In addition to that, Arbitrage Fund is 1.85 times more volatile than Calamos Market Neutral. It trades about 0.04 of its total potential returns per unit of risk. Calamos Market Neutral is currently generating about 0.24 per unit of volatility. If you would invest 1,286 in Calamos Market Neutral on September 23, 2024 and sell it today you would earn a total of 222.00 from holding Calamos Market Neutral or generate 17.26% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
The Arbitrage Fund vs. Calamos Market Neutral
Performance |
Timeline |
Arbitrage Fund |
Calamos Market Neutral |
Arbitrage Fund and Calamos Market Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Arbitrage Fund and Calamos Market
The main advantage of trading using opposite Arbitrage Fund and Calamos Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arbitrage Fund position performs unexpectedly, Calamos Market 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 Market will offset losses from the drop in Calamos Market's long position.Arbitrage Fund vs. The Merger Fund | Arbitrage Fund vs. Calamos Market Neutral | Arbitrage Fund vs. Hussman Strategic Growth | Arbitrage Fund vs. Gateway Fund Class |
Calamos Market vs. The Arbitrage Fund | Calamos Market vs. The Merger Fund | Calamos Market vs. Gateway Fund Class | Calamos Market vs. Diamond Hill Long Short |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Global Correlations Find global opportunities by holding instruments from different markets |