Correlation Between American Balanced and Calamos Global
Can any of the company-specific risk be diversified away by investing in both American Balanced 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 American Balanced and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Balanced Fund and Calamos Global Equity, you can compare the effects of market volatilities on American Balanced 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 American Balanced with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Balanced and Calamos Global.
Diversification Opportunities for American Balanced and Calamos Global
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between American and Calamos is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding American Balanced Fund 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 American Balanced 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 American Balanced Fund 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 American Balanced i.e., American Balanced and Calamos Global go up and down completely randomly.
Pair Corralation between American Balanced and Calamos Global
Assuming the 90 days horizon American Balanced Fund is expected to generate 0.5 times more return on investment than Calamos Global. However, American Balanced Fund is 2.02 times less risky than Calamos Global. It trades about 0.13 of its potential returns per unit of risk. Calamos Global Equity is currently generating about 0.06 per unit of risk. If you would invest 3,358 in American Balanced Fund on September 5, 2024 and sell it today you would earn a total of 310.00 from holding American Balanced Fund or generate 9.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.2% |
| Values | Daily Returns |
American Balanced Fund vs. Calamos Global Equity
Performance |
| Timeline |
| American Balanced |
| Calamos Global Equity |
American Balanced and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Balanced and Calamos Global
The main advantage of trading using opposite American Balanced and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Balanced 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.| American Balanced vs. Mutual Of America | American Balanced vs. American Century Etf | American Balanced vs. Mid Cap Value Profund | American Balanced vs. Applied Finance Explorer |
| Calamos Global vs. Calamos Dynamic Convertible | Calamos Global vs. Putnam Convertible Incm Gwth | Calamos Global vs. Rationalpier 88 Convertible | Calamos Global vs. Absolute Convertible Arbitrage |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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