Correlation Between Ab Global and Calamos International
Can any of the company-specific risk be diversified away by investing in both Ab Global and Calamos International 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 Global and Calamos International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Global Risk and Calamos International Small, you can compare the effects of market volatilities on Ab Global and Calamos International 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 Global with a short position of Calamos International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and Calamos International.
Diversification Opportunities for Ab Global and Calamos International
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CABIX and Calamos is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global Risk and Calamos International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos International and Ab Global 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 Global Risk are associated (or correlated) with Calamos International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos International has no effect on the direction of Ab Global i.e., Ab Global and Calamos International go up and down completely randomly.
Pair Corralation between Ab Global and Calamos International
Assuming the 90 days horizon Ab Global is expected to generate 1.69 times less return on investment than Calamos International. But when comparing it to its historical volatility, Ab Global Risk is 1.74 times less risky than Calamos International. It trades about 0.06 of its potential returns per unit of risk. Calamos International Small is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 788.00 in Calamos International Small on September 12, 2024 and sell it today you would earn a total of 220.00 from holding Calamos International Small or generate 27.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Ab Global Risk vs. Calamos International Small
Performance |
| Timeline |
| Ab Global Risk |
| Calamos International |
Ab Global and Calamos International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and Calamos International
The main advantage of trading using opposite Ab Global and Calamos International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global position performs unexpectedly, Calamos International 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 International will offset losses from the drop in Calamos International's long position.| Ab Global vs. Prudential Government Income | Ab Global vs. Dreyfus Government Cash | Ab Global vs. Payden Government Fund | Ab Global vs. Sit Government Securities |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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