Correlation Between Calamos Global and Brown Advisory
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Brown Advisory 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 Brown Advisory 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 Brown Advisory Flexible, you can compare the effects of market volatilities on Calamos Global and Brown Advisory 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 Brown Advisory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Brown Advisory.
Diversification Opportunities for Calamos Global and Brown Advisory
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Brown is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Brown Advisory Flexible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brown Advisory Flexible 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 Brown Advisory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brown Advisory Flexible has no effect on the direction of Calamos Global i.e., Calamos Global and Brown Advisory go up and down completely randomly.
Pair Corralation between Calamos Global and Brown Advisory
Assuming the 90 days horizon Calamos Global Equity is expected to generate 1.24 times more return on investment than Brown Advisory. However, Calamos Global is 1.24 times more volatile than Brown Advisory Flexible. It trades about 0.11 of its potential returns per unit of risk. Brown Advisory Flexible is currently generating about 0.11 per unit of risk. If you would invest 1,388 in Calamos Global Equity on September 12, 2024 and sell it today you would earn a total of 606.00 from holding Calamos Global Equity or generate 43.66% 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. Brown Advisory Flexible
Performance |
| Timeline |
| Calamos Global Equity |
| Brown Advisory Flexible |
Calamos Global and Brown Advisory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Brown Advisory
The main advantage of trading using opposite Calamos Global and Brown Advisory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Brown Advisory 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 Brown Advisory will offset losses from the drop in Brown Advisory's long position.| Calamos Global vs. American Funds New | Calamos Global vs. American Funds New | Calamos Global vs. New Perspective Fund | Calamos Global vs. New Perspective Fund |
| Brown Advisory vs. Cutler Equity | Brown Advisory vs. Qs International Equity | Brown Advisory vs. Rbc Global Equity | Brown Advisory 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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