Correlation Between Calamos Global and Equity Growth
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Equity Growth 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 Equity Growth 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 Equity Growth Fund, you can compare the effects of market volatilities on Calamos Global and Equity Growth 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 Equity Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Equity Growth.
Diversification Opportunities for Calamos Global and Equity Growth
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Equity is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Equity Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equity Growth 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 Equity Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equity Growth has no effect on the direction of Calamos Global i.e., Calamos Global and Equity Growth go up and down completely randomly.
Pair Corralation between Calamos Global and Equity Growth
Assuming the 90 days horizon Calamos Global Equity is expected to generate 1.21 times more return on investment than Equity Growth. However, Calamos Global is 1.21 times more volatile than Equity Growth Fund. It trades about 0.1 of its potential returns per unit of risk. Equity Growth Fund is currently generating about 0.1 per unit of risk. If you would invest 1,679 in Calamos Global Equity on September 20, 2024 and sell it today you would earn a total of 301.00 from holding Calamos Global Equity or generate 17.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Global Equity vs. Equity Growth Fund
Performance |
| Timeline |
| Calamos Global Equity |
| Equity Growth |
Calamos Global and Equity Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Equity Growth
The main advantage of trading using opposite Calamos Global and Equity Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Equity Growth 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 Equity Growth will offset losses from the drop in Equity Growth's long position.| Calamos Global vs. Siit Ultra Short | Calamos Global vs. Fidelity Sai Short Term | Calamos Global vs. Aqr Long Short Equity | Calamos Global vs. Rbc Short Duration |
| Equity Growth vs. Us Vector Equity | Equity Growth vs. Multimedia Portfolio Multimedia | Equity Growth vs. Ab Select Equity | Equity Growth vs. Calamos Global Equity |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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