Correlation Between Calvert Global and Calamos Vertible

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Can any of the company-specific risk be diversified away by investing in both Calvert Global and Calamos Vertible 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 Calvert Global and Calamos Vertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Global Energy and Calamos Vertible Fund, you can compare the effects of market volatilities on Calvert Global and Calamos Vertible 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 Calvert Global with a short position of Calamos Vertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and Calamos Vertible.

Diversification Opportunities for Calvert Global and Calamos Vertible

-0.55
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Calvert and Calamos is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy and Calamos Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Vertible and Calvert 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 Calvert Global Energy are associated (or correlated) with Calamos Vertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Vertible has no effect on the direction of Calvert Global i.e., Calvert Global and Calamos Vertible go up and down completely randomly.

Pair Corralation between Calvert Global and Calamos Vertible

Assuming the 90 days horizon Calvert Global is expected to generate 1.14 times less return on investment than Calamos Vertible. In addition to that, Calvert Global is 1.06 times more volatile than Calamos Vertible Fund. It trades about 0.12 of its total potential returns per unit of risk. Calamos Vertible Fund is currently generating about 0.14 per unit of volatility. If you would invest  2,223  in Calamos Vertible Fund on September 13, 2024 and sell it today you would earn a total of  35.00  from holding Calamos Vertible Fund or generate 1.57% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Calvert Global Energy  vs.  Calamos Vertible Fund

 Performance 
       Timeline  
Calvert Global Energy 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Calvert Global Energy has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Calvert Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Calamos Vertible 

Risk-Adjusted Performance

21 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Vertible Fund are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Calamos Vertible may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Calvert Global and Calamos Vertible Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Calvert Global and Calamos Vertible

The main advantage of trading using opposite Calvert Global and Calamos Vertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Global position performs unexpectedly, Calamos Vertible 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 Vertible will offset losses from the drop in Calamos Vertible's long position.
The idea behind Calvert Global Energy and Calamos Vertible Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

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