Correlation Between Calamos International and Pimco Funds
Can any of the company-specific risk be diversified away by investing in both Calamos International and Pimco 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 International and Pimco Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos International Small and Pimco Funds , you can compare the effects of market volatilities on Calamos International and Pimco 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 International with a short position of Pimco Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos International and Pimco Funds.
Diversification Opportunities for Calamos International and Pimco Funds
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and PIMCO is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Calamos International Small and Pimco Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Funds and Calamos International 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 International Small are associated (or correlated) with Pimco Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Funds has no effect on the direction of Calamos International i.e., Calamos International and Pimco Funds go up and down completely randomly.
Pair Corralation between Calamos International and Pimco Funds
Assuming the 90 days horizon Calamos International Small is expected to generate 1.15 times more return on investment than Pimco Funds. However, Calamos International is 1.15 times more volatile than Pimco Funds . It trades about 0.05 of its potential returns per unit of risk. Pimco Funds is currently generating about 0.04 per unit of risk. If you would invest 795.00 in Calamos International Small on September 1, 2024 and sell it today you would earn a total of 183.00 from holding Calamos International Small or generate 23.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos International Small vs. Pimco Funds
Performance |
| Timeline |
| Calamos International |
| Pimco Funds |
Calamos International and Pimco Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos International and Pimco Funds
The main advantage of trading using opposite Calamos International and Pimco Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos International position performs unexpectedly, Pimco 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 Pimco Funds will offset losses from the drop in Pimco Funds' long position.| Calamos International vs. Pimco Funds | Calamos International vs. T Rowe Price | Calamos International vs. Dws Government Money | Calamos International vs. Meeder Funds |
| Pimco Funds vs. Vanguard Total Stock | Pimco Funds vs. Vanguard 500 Index | Pimco Funds vs. Vanguard Total Stock | Pimco Funds vs. Vanguard Total Stock |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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