Correlation Between Calamos Global and Harding Loevner
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Harding Loevner 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 Harding Loevner 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 Harding Loevner Global, you can compare the effects of market volatilities on Calamos Global and Harding Loevner 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 Harding Loevner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Harding Loevner.
Diversification Opportunities for Calamos Global and Harding Loevner
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Harding is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Harding Loevner Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harding Loevner Global 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 Harding Loevner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harding Loevner Global has no effect on the direction of Calamos Global i.e., Calamos Global and Harding Loevner go up and down completely randomly.
Pair Corralation between Calamos Global and Harding Loevner
Assuming the 90 days horizon Calamos Global Equity is expected to generate 1.26 times more return on investment than Harding Loevner. However, Calamos Global is 1.26 times more volatile than Harding Loevner Global. It trades about 0.12 of its potential returns per unit of risk. Harding Loevner Global is currently generating about 0.09 per unit of risk. If you would invest 1,377 in Calamos Global Equity on September 3, 2024 and sell it today you would earn a total of 589.00 from holding Calamos Global Equity or generate 42.77% 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. Harding Loevner Global
Performance |
| Timeline |
| Calamos Global Equity |
| Harding Loevner Global |
Calamos Global and Harding Loevner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Harding Loevner
The main advantage of trading using opposite Calamos Global and Harding Loevner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Harding Loevner 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 Harding Loevner will offset losses from the drop in Harding Loevner's long position.| Calamos Global vs. Allianzgi Technology Fund | Calamos Global vs. Firsthand Technology Opportunities | Calamos Global vs. Red Oak Technology | Calamos Global vs. Mfs Technology Fund |
| Harding Loevner vs. Davis Financial Fund | Harding Loevner vs. Angel Oak Financial | Harding Loevner vs. Blackrock Financial Institutions | Harding Loevner vs. Vanguard Financials Index |
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 Managers module to screen money managers from public funds and ETFs managed around the world.
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