Correlation Between Boeing and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Boeing 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 Boeing and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Boeing and Calamos Global Growth, you can compare the effects of market volatilities on Boeing 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 Boeing with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boeing and Calamos Global.
Diversification Opportunities for Boeing and Calamos Global
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Boeing and Calamos is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing and Calamos Global Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Growth and Boeing 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 Boeing 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 Growth has no effect on the direction of Boeing i.e., Boeing and Calamos Global go up and down completely randomly.
Pair Corralation between Boeing and Calamos Global
Allowing for the 90-day total investment horizon The Boeing is expected to generate 2.4 times more return on investment than Calamos Global. However, Boeing is 2.4 times more volatile than Calamos Global Growth. It trades about 0.08 of its potential returns per unit of risk. Calamos Global Growth is currently generating about 0.06 per unit of risk. If you would invest 17,516 in The Boeing on November 27, 2024 and sell it today you would earn a total of 475.00 from holding The Boeing or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Boeing vs. Calamos Global Growth
Performance |
| Timeline |
| Boeing |
| Calamos Global Growth |
Boeing and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boeing and Calamos Global
The main advantage of trading using opposite Boeing and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boeing 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.The idea behind The Boeing and Calamos Global Growth 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 Global vs. Pace High Yield | Calamos Global vs. Virtus High Yield | Calamos Global vs. Alpine High Yield | Calamos Global vs. Artisan High Income |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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