Correlation Between Calamos Global and Balanced Fund
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Balanced Fund 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 Balanced Fund 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 Balanced Fund Retail, you can compare the effects of market volatilities on Calamos Global and Balanced Fund 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 Balanced Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Balanced Fund.
Diversification Opportunities for Calamos Global and Balanced Fund
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and Balanced is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Balanced Fund Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Balanced Fund Retail 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 Balanced Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Balanced Fund Retail has no effect on the direction of Calamos Global i.e., Calamos Global and Balanced Fund go up and down completely randomly.
Pair Corralation between Calamos Global and Balanced Fund
Assuming the 90 days horizon Calamos Global Equity is expected to generate 1.35 times more return on investment than Balanced Fund. However, Calamos Global is 1.35 times more volatile than Balanced Fund Retail. It trades about 0.31 of its potential returns per unit of risk. Balanced Fund Retail is currently generating about 0.26 per unit of risk. If you would invest 1,859 in Calamos Global Equity on September 1, 2024 and sell it today you would earn a total of 89.00 from holding Calamos Global Equity or generate 4.79% 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. Balanced Fund Retail
Performance |
| Timeline |
| Calamos Global Equity |
| Balanced Fund Retail |
Calamos Global and Balanced Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Balanced Fund
The main advantage of trading using opposite Calamos Global and Balanced Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Balanced Fund 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 Balanced Fund will offset losses from the drop in Balanced Fund's long position.| Calamos Global vs. Rbc Emerging Markets | Calamos Global vs. Western Asset Diversified | Calamos Global vs. Aqr Long Short Equity | Calamos Global vs. Transamerica Emerging Markets |
| Balanced Fund vs. Muirfield Fund Retail | Balanced Fund vs. Dynamic Growth Fund | Balanced Fund vs. Infrastructure Fund Retail | Balanced Fund vs. Quantex Fund Retail |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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