Correlation Between Calamos Global and Limited Duration
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Limited Duration 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 Limited Duration 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 Limited Duration Fund, you can compare the effects of market volatilities on Calamos Global and Limited Duration 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 Limited Duration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Limited Duration.
Diversification Opportunities for Calamos Global and Limited Duration
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Limited is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Limited Duration Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Limited Duration 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 Limited Duration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Limited Duration has no effect on the direction of Calamos Global i.e., Calamos Global and Limited Duration go up and down completely randomly.
Pair Corralation between Calamos Global and Limited Duration
Assuming the 90 days horizon Calamos Global Equity is expected to generate 7.02 times more return on investment than Limited Duration. However, Calamos Global is 7.02 times more volatile than Limited Duration Fund. It trades about 0.14 of its potential returns per unit of risk. Limited Duration Fund is currently generating about 0.17 per unit of risk. If you would invest 1,402 in Calamos Global Equity on September 2, 2024 and sell it today you would earn a total of 564.00 from holding Calamos Global Equity or generate 40.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Global Equity vs. Limited Duration Fund
Performance |
| Timeline |
| Calamos Global Equity |
| Limited Duration |
Calamos Global and Limited Duration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Limited Duration
The main advantage of trading using opposite Calamos Global and Limited Duration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Limited Duration 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 Limited Duration will offset losses from the drop in Limited Duration's 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 |
| Limited Duration vs. Qs Large Cap | Limited Duration vs. M Large Cap | Limited Duration vs. Dodge Cox Stock | Limited Duration vs. T Rowe Price |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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