Correlation Between Calamos International and City National
Can any of the company-specific risk be diversified away by investing in both Calamos International and City National 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 City National 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 City National Rochdale, you can compare the effects of market volatilities on Calamos International and City National 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 City National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos International and City National.
Diversification Opportunities for Calamos International and City National
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and City is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Calamos International Small and City National Rochdale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City National Rochdale 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 City National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City National Rochdale has no effect on the direction of Calamos International i.e., Calamos International and City National go up and down completely randomly.
Pair Corralation between Calamos International and City National
Assuming the 90 days horizon Calamos International Small is expected to under-perform the City National. In addition to that, Calamos International is 8.79 times more volatile than City National Rochdale. It trades about -0.02 of its total potential returns per unit of risk. City National Rochdale is currently generating about 0.17 per unit of volatility. If you would invest 1,936 in City National Rochdale on September 14, 2024 and sell it today you would earn a total of 46.00 from holding City National Rochdale or generate 2.38% 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. City National Rochdale
Performance |
| Timeline |
| Calamos International |
| City National Rochdale |
Calamos International and City National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos International and City National
The main advantage of trading using opposite Calamos International and City National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos International position performs unexpectedly, City National 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 City National will offset losses from the drop in City National's long position.| Calamos International vs. City National Rochdale | Calamos International vs. Inverse High Yield | Calamos International vs. Strategic Advisers Income | Calamos International vs. T Rowe Price |
| City National vs. City National Rochdale | City National vs. City National Rochdale | City National vs. City National Rochdale | City National vs. City National Rochdale |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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