Correlation Between Calamos Global and Transamerica Asset
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Transamerica Asset 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 Transamerica Asset 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 Transamerica Asset Allocation, you can compare the effects of market volatilities on Calamos Global and Transamerica Asset 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 Transamerica Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Transamerica Asset.
Diversification Opportunities for Calamos Global and Transamerica Asset
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and Transamerica is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Transamerica Asset Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transamerica Asset 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 Transamerica Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transamerica Asset has no effect on the direction of Calamos Global i.e., Calamos Global and Transamerica Asset go up and down completely randomly.
Pair Corralation between Calamos Global and Transamerica Asset
Assuming the 90 days horizon Calamos Global Equity is expected to generate 1.7 times more return on investment than Transamerica Asset. However, Calamos Global is 1.7 times more volatile than Transamerica Asset Allocation. It trades about 0.12 of its potential returns per unit of risk. Transamerica Asset Allocation is currently generating about 0.12 per unit of risk. If you would invest 1,350 in Calamos Global Equity on September 12, 2024 and sell it today you would earn a total of 644.00 from holding Calamos Global Equity or generate 47.7% 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. Transamerica Asset Allocation
Performance |
| Timeline |
| Calamos Global Equity |
| Transamerica Asset |
Calamos Global and Transamerica Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Transamerica Asset
The main advantage of trading using opposite Calamos Global and Transamerica Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Transamerica Asset 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 Transamerica Asset will offset losses from the drop in Transamerica Asset's long position.| Calamos Global vs. American Funds New | Calamos Global vs. American Funds New | Calamos Global vs. New Perspective Fund | Calamos Global vs. New Perspective Fund |
| Transamerica Asset vs. Calamos Global Equity | Transamerica Asset vs. Qs International Equity | Transamerica Asset vs. Gmo Global Equity | Transamerica Asset vs. Locorr Dynamic Equity |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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