Correlation Between Calamos Global and Dodge Cox
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Dodge Cox 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 Dodge Cox 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 Dodge International Stock, you can compare the effects of market volatilities on Calamos Global and Dodge Cox 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 Dodge Cox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Dodge Cox.
Diversification Opportunities for Calamos Global and Dodge Cox
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Calamos and Dodge is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Dodge International Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dodge International Stock 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 Dodge Cox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dodge International Stock has no effect on the direction of Calamos Global i.e., Calamos Global and Dodge Cox go up and down completely randomly.
Pair Corralation between Calamos Global and Dodge Cox
Assuming the 90 days horizon Calamos Global is expected to generate 4.32 times less return on investment than Dodge Cox. In addition to that, Calamos Global is 1.42 times more volatile than Dodge International Stock. It trades about 0.05 of its total potential returns per unit of risk. Dodge International Stock is currently generating about 0.33 per unit of volatility. If you would invest 5,201 in Dodge International Stock on November 27, 2024 and sell it today you would earn a total of 258.00 from holding Dodge International Stock or generate 4.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Global Equity vs. Dodge International Stock
Performance |
| Timeline |
| Calamos Global Equity |
| Dodge International Stock |
Calamos Global and Dodge Cox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Dodge Cox
The main advantage of trading using opposite Calamos Global and Dodge Cox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Dodge Cox 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 Dodge Cox will offset losses from the drop in Dodge Cox's long position.| Calamos Global vs. World Energy Fund | Calamos Global vs. Hennessy Bp Energy | Calamos Global vs. Franklin Natural Resources | Calamos Global vs. Clearbridge Energy Mlp |
| Dodge Cox vs. Dodge Stock Fund | Dodge Cox vs. Dodge Income Fund | Dodge Cox vs. Dodge Balanced Fund | Dodge Cox vs. The Fairholme Fund |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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