Correlation Between Calamos Global and Floating Rate
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Floating Rate 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 Floating Rate 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 Floating Rate Income, you can compare the effects of market volatilities on Calamos Global and Floating Rate 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 Floating Rate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Floating Rate.
Diversification Opportunities for Calamos Global and Floating Rate
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Floating is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Floating Rate Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Floating Rate Income 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 Floating Rate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Floating Rate Income has no effect on the direction of Calamos Global i.e., Calamos Global and Floating Rate go up and down completely randomly.
Pair Corralation between Calamos Global and Floating Rate
Assuming the 90 days horizon Calamos Global Equity is expected to generate 5.39 times more return on investment than Floating Rate. However, Calamos Global is 5.39 times more volatile than Floating Rate Income. It trades about 0.11 of its potential returns per unit of risk. Floating Rate Income is currently generating about 0.2 per unit of risk. If you would invest 1,388 in Calamos Global Equity on September 12, 2024 and sell it today you would earn a total of 606.00 from holding Calamos Global Equity or generate 43.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Calamos Global Equity vs. Floating Rate Income
Performance |
| Timeline |
| Calamos Global Equity |
| Floating Rate Income |
Calamos Global and Floating Rate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Floating Rate
The main advantage of trading using opposite Calamos Global and Floating Rate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Floating Rate 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 Floating Rate will offset losses from the drop in Floating Rate'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 |
| Floating Rate vs. Huber Capital Equity | Floating Rate vs. Calamos Global Equity | Floating Rate vs. Us Vector Equity | Floating Rate vs. Ab Fixed Income Shares |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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