Correlation Between Calamos Global and American Funds
Can any of the company-specific risk be diversified away by investing in both Calamos Global and American Funds 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 Calamos Global and American Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Global Equity and American Funds New, you can compare the effects of market volatilities on Calamos Global and American Funds 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 Calamos Global with a short position of American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and American Funds.
Diversification Opportunities for Calamos Global and American Funds
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and American is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and American Funds New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds New and Calamos 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 Calamos Global Equity are associated (or correlated) with American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds New has no effect on the direction of Calamos Global i.e., Calamos Global and American Funds go up and down completely randomly.
Pair Corralation between Calamos Global and American Funds
Assuming the 90 days horizon Calamos Global Equity is expected to generate 1.14 times more return on investment than American Funds. However, Calamos Global is 1.14 times more volatile than American Funds New. It trades about 0.39 of its potential returns per unit of risk. American Funds New is currently generating about 0.21 per unit of risk. If you would invest 1,761 in Calamos Global Equity on September 4, 2024 and sell it today you would earn a total of 109.00 from holding Calamos Global Equity or generate 6.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Calamos Global Equity vs. American Funds New
Performance |
| Timeline |
| Calamos Global Equity |
| American Funds New |
Calamos Global and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and American Funds
The main advantage of trading using opposite Calamos Global and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' long position.| Calamos Global vs. Calamos International Growth | Calamos Global vs. Calamos Global Growth | Calamos Global vs. Calamos Evolving World | Calamos Global vs. Calamos Market Neutral |
| American Funds vs. Aqr Managed Futures | American Funds vs. Guidepath Managed Futures | American Funds vs. Ab Bond Inflation | American Funds vs. Tiaa Cref Inflation Linked Bond |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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