Correlation Between Calamos Global and Alger Health
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Alger Health 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 Alger Health 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 Alger Health Sciences, you can compare the effects of market volatilities on Calamos Global and Alger Health 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 Alger Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Alger Health.
Diversification Opportunities for Calamos Global and Alger Health
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calamos and Alger is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Alger Health Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Health Sciences 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 Alger Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger Health Sciences has no effect on the direction of Calamos Global i.e., Calamos Global and Alger Health go up and down completely randomly.
Pair Corralation between Calamos Global and Alger Health
Assuming the 90 days horizon Calamos Global Equity is expected to generate 0.89 times more return on investment than Alger Health. However, Calamos Global Equity is 1.13 times less risky than Alger Health. It trades about 0.36 of its potential returns per unit of risk. Alger Health Sciences is currently generating about 0.13 per unit of risk. If you would invest 1,863 in Calamos Global Equity on September 3, 2024 and sell it today you would earn a total of 103.00 from holding Calamos Global Equity or generate 5.53% 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. Alger Health Sciences
Performance |
| Timeline |
| Calamos Global Equity |
| Alger Health Sciences |
Calamos Global and Alger Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Alger Health
The main advantage of trading using opposite Calamos Global and Alger Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Alger Health 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 Alger Health will offset losses from the drop in Alger Health's long position.| Calamos Global vs. Allianzgi Technology Fund | Calamos Global vs. Firsthand Technology Opportunities | Calamos Global vs. Red Oak Technology | Calamos Global vs. Mfs Technology Fund |
| Alger Health vs. Vanguard Health Care | Alger Health vs. Vanguard Health Care | Alger Health vs. T Rowe Price | Alger Health 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |