Correlation Between Calamos Global and Templeton Global
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Templeton Global 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 Templeton Global 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 Templeton Global Total, you can compare the effects of market volatilities on Calamos Global and Templeton Global 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 Templeton Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Templeton Global.
Diversification Opportunities for Calamos Global and Templeton Global
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Templeton is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Templeton Global Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Global Total 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 Templeton Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Global Total has no effect on the direction of Calamos Global i.e., Calamos Global and Templeton Global go up and down completely randomly.
Pair Corralation between Calamos Global and Templeton Global
Assuming the 90 days horizon Calamos Global Equity is expected to generate 1.08 times more return on investment than Templeton Global. However, Calamos Global is 1.08 times more volatile than Templeton Global Total. It trades about 0.36 of its potential returns per unit of risk. Templeton Global Total is currently generating about -0.08 per unit of risk. If you would invest 1,863 in Calamos Global Equity on September 4, 2024 and sell it today you would earn a total of 103.00 from holding Calamos Global Equity or generate 5.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Calamos Global Equity vs. Templeton Global Total
Performance |
| Timeline |
| Calamos Global Equity |
| Templeton Global Total |
Calamos Global and Templeton Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Templeton Global
The main advantage of trading using opposite Calamos Global and Templeton Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Templeton Global 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 Templeton Global will offset losses from the drop in Templeton Global'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 |
| Templeton Global vs. Franklin Mutual Beacon | Templeton Global vs. Templeton Developing Markets | Templeton Global vs. Franklin Mutual Global | Templeton Global vs. Franklin Mutual Global |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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