Correlation Between Calamos Global and Ab Select
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Ab Select 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 Ab Select 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 Ab Select Longshort, you can compare the effects of market volatilities on Calamos Global and Ab Select 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 Ab Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Ab Select.
Diversification Opportunities for Calamos Global and Ab Select
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and ASCLX is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Ab Select Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Select Longshort 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 Ab Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Select Longshort has no effect on the direction of Calamos Global i.e., Calamos Global and Ab Select go up and down completely randomly.
Pair Corralation between Calamos Global and Ab Select
Assuming the 90 days horizon Calamos Global Equity is expected to generate 0.41 times more return on investment than Ab Select. However, Calamos Global Equity is 2.43 times less risky than Ab Select. It trades about 0.15 of its potential returns per unit of risk. Ab Select Longshort is currently generating about -0.18 per unit of risk. If you would invest 1,938 in Calamos Global Equity on September 13, 2024 and sell it today you would earn a total of 40.00 from holding Calamos Global Equity or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Global Equity vs. Ab Select Longshort
Performance |
| Timeline |
| Calamos Global Equity |
| Ab Select Longshort |
Calamos Global and Ab Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Ab Select
The main advantage of trading using opposite Calamos Global and Ab Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Ab Select 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 Ab Select will offset losses from the drop in Ab Select's long position.| Calamos Global vs. Calamos Antetokounmpo Sustainable | Calamos Global vs. Innealta Capital Sector | Calamos Global vs. Calamos Antetokounmpo Sustainable | Calamos Global vs. Calamos Antetokounmpo Sustainable |
| Ab Select vs. Mirova Global Green | Ab Select vs. Investec Global Franchise | Ab Select vs. Siit Global Managed | Ab Select vs. Morningstar Global Income |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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