Correlation Between Calamos Global and Morgan Stanley
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Morgan Stanley 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 Morgan Stanley 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 Morgan Stanley Counterpoint, you can compare the effects of market volatilities on Calamos Global and Morgan Stanley 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 Morgan Stanley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Morgan Stanley.
Diversification Opportunities for Calamos Global and Morgan Stanley
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Morgan is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Morgan Stanley Counterpoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morgan Stanley Count 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 Morgan Stanley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Morgan Stanley Count has no effect on the direction of Calamos Global i.e., Calamos Global and Morgan Stanley go up and down completely randomly.
Pair Corralation between Calamos Global and Morgan Stanley
Assuming the 90 days horizon Calamos Global Equity is expected to generate 0.77 times more return on investment than Morgan Stanley. However, Calamos Global Equity is 1.31 times less risky than Morgan Stanley. It trades about 0.14 of its potential returns per unit of risk. Morgan Stanley Counterpoint is currently generating about 0.08 per unit of risk. If you would invest 1,322 in Calamos Global Equity on September 4, 2024 and sell it today you would earn a total of 644.00 from holding Calamos Global Equity or generate 48.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 78.55% |
| Values | Daily Returns |
Calamos Global Equity vs. Morgan Stanley Counterpoint
Performance |
| Timeline |
| Calamos Global Equity |
| Morgan Stanley Count |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Calamos Global and Morgan Stanley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Morgan Stanley
The main advantage of trading using opposite Calamos Global and Morgan Stanley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Morgan Stanley 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 Morgan Stanley will offset losses from the drop in Morgan Stanley'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 |
| Morgan Stanley vs. Old Westbury Large | Morgan Stanley vs. Volumetric Fund Volumetric | Morgan Stanley vs. Fm Investments Large | Morgan Stanley vs. Artisan Thematic 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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