Correlation Between Ab Select and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Ab Select and Calamos Global 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 Ab Select and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Select Equity and Calamos Global Equity, you can compare the effects of market volatilities on Ab Select and Calamos Global 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 Ab Select with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Select and Calamos Global.
Diversification Opportunities for Ab Select and Calamos Global
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AUUIX and Calamos is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Ab Select Equity and Calamos Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Equity and Ab Select 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 Ab Select Equity are associated (or correlated) with Calamos Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Global Equity has no effect on the direction of Ab Select i.e., Ab Select and Calamos Global go up and down completely randomly.
Pair Corralation between Ab Select and Calamos Global
Assuming the 90 days horizon Ab Select Equity is expected to generate 1.03 times more return on investment than Calamos Global. However, Ab Select is 1.03 times more volatile than Calamos Global Equity. It trades about 0.35 of its potential returns per unit of risk. Calamos Global Equity is currently generating about 0.31 per unit of risk. If you would invest 2,283 in Ab Select Equity on September 1, 2024 and sell it today you would earn a total of 127.00 from holding Ab Select Equity or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Select Equity vs. Calamos Global Equity
Performance |
| Timeline |
| Ab Select Equity |
| Calamos Global Equity |
Ab Select and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Select and Calamos Global
The main advantage of trading using opposite Ab Select and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Select position performs unexpectedly, Calamos Global 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 Global will offset losses from the drop in Calamos Global's long position.| Ab Select vs. Fidelity Advisor Energy | Ab Select vs. Gamco Natural Resources | Ab Select vs. Hennessy Bp Energy | Ab Select vs. Alpsalerian Energy Infrastructure |
| Calamos Global vs. Rbc Emerging Markets | Calamos Global vs. Western Asset Diversified | Calamos Global vs. Aqr Long Short Equity | Calamos Global vs. Transamerica Emerging Markets |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |