Correlation Between Calamos Global and Dreyfus Natural
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Dreyfus Natural 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 Dreyfus Natural 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 Dreyfus Natural Resources, you can compare the effects of market volatilities on Calamos Global and Dreyfus Natural 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 Dreyfus Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Dreyfus Natural.
Diversification Opportunities for Calamos Global and Dreyfus Natural
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Dreyfus is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Dreyfus Natural Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Natural Resources 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 Dreyfus Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Natural Resources has no effect on the direction of Calamos Global i.e., Calamos Global and Dreyfus Natural go up and down completely randomly.
Pair Corralation between Calamos Global and Dreyfus Natural
Assuming the 90 days horizon Calamos Global Equity is expected to generate 0.7 times more return on investment than Dreyfus Natural. However, Calamos Global Equity is 1.43 times less risky than Dreyfus Natural. It trades about 0.1 of its potential returns per unit of risk. Dreyfus Natural Resources is currently generating about 0.0 per unit of risk. If you would invest 1,262 in Calamos Global Equity on September 2, 2024 and sell it today you would earn a total of 704.00 from holding Calamos Global Equity or generate 55.78% 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. Dreyfus Natural Resources
Performance |
| Timeline |
| Calamos Global Equity |
| Dreyfus Natural Resources |
Calamos Global and Dreyfus Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Dreyfus Natural
The main advantage of trading using opposite Calamos Global and Dreyfus Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Dreyfus Natural 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 Dreyfus Natural will offset losses from the drop in Dreyfus Natural's long position.| Calamos Global vs. Calamos International Growth | Calamos Global vs. Calamos Global Growth | Calamos Global vs. Calamos Evolving World | Calamos Global vs. Calamos Market Neutral |
| Dreyfus Natural vs. Dreyfusstandish Global Fixed | Dreyfus Natural vs. Dreyfusstandish Global Fixed | Dreyfus Natural vs. Dreyfus High Yield | Dreyfus Natural vs. Dreyfus High Yield |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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