Correlation Between Calamos Global and American Balanced
Can any of the company-specific risk be diversified away by investing in both Calamos Global and American Balanced 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 American Balanced 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 American Balanced Fund, you can compare the effects of market volatilities on Calamos Global and American Balanced 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 American Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and American Balanced.
Diversification Opportunities for Calamos Global and American Balanced
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and American is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and American Balanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Balanced 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 American Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Balanced has no effect on the direction of Calamos Global i.e., Calamos Global and American Balanced go up and down completely randomly.
Pair Corralation between Calamos Global and American Balanced
Assuming the 90 days horizon Calamos Global Equity is expected to generate 1.96 times more return on investment than American Balanced. However, Calamos Global is 1.96 times more volatile than American Balanced Fund. It trades about 0.13 of its potential returns per unit of risk. American Balanced Fund is currently generating about 0.14 per unit of risk. If you would invest 1,417 in Calamos Global Equity on September 4, 2024 and sell it today you would earn a total of 549.00 from holding Calamos Global Equity or generate 38.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Global Equity vs. American Balanced Fund
Performance |
| Timeline |
| Calamos Global Equity |
| American Balanced |
Calamos Global and American Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and American Balanced
The main advantage of trading using opposite Calamos Global and American Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, American Balanced 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 American Balanced will offset losses from the drop in American Balanced's long position.| Calamos Global vs. 1919 Financial Services | Calamos Global vs. Vanguard Financials Index | Calamos Global vs. Royce Global Financial | Calamos Global vs. Fidelity Advisor Financial |
| American Balanced vs. Calamos Global Equity | American Balanced vs. Sarofim Equity | American Balanced vs. Nationwide Global Equity | American Balanced vs. Ab Select 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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