Correlation Between Calamos Global and Capital Appreciation
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Capital Appreciation 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 Capital Appreciation 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 Capital Appreciation Fund, you can compare the effects of market volatilities on Calamos Global and Capital Appreciation 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 Capital Appreciation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Capital Appreciation.
Diversification Opportunities for Calamos Global and Capital Appreciation
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Capital is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Capital Appreciation Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Appreciation 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 Capital Appreciation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Appreciation has no effect on the direction of Calamos Global i.e., Calamos Global and Capital Appreciation go up and down completely randomly.
Pair Corralation between Calamos Global and Capital Appreciation
Assuming the 90 days horizon Calamos Global Equity is expected to generate 0.86 times more return on investment than Capital Appreciation. However, Calamos Global Equity is 1.17 times less risky than Capital Appreciation. It trades about 0.14 of its potential returns per unit of risk. Capital Appreciation Fund is currently generating about 0.11 per unit of risk. If you would invest 1,336 in Calamos Global Equity on September 1, 2024 and sell it today you would earn a total of 612.00 from holding Calamos Global Equity or generate 45.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.63% |
| Values | Daily Returns |
Calamos Global Equity vs. Capital Appreciation Fund
Performance |
| Timeline |
| Calamos Global Equity |
| Capital Appreciation |
Calamos Global and Capital Appreciation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Capital Appreciation
The main advantage of trading using opposite Calamos Global and Capital Appreciation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Capital Appreciation 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 Capital Appreciation will offset losses from the drop in Capital Appreciation's long position.| Calamos Global vs. Rbc Emerging Markets | Calamos Global vs. Western Asset Diversified | Calamos Global vs. Aqr Long Short Equity | Calamos Global vs. Transamerica Emerging Markets |
| Capital Appreciation vs. Lgm Risk Managed | Capital Appreciation vs. Ab Global Risk | Capital Appreciation vs. Siit High Yield | Capital Appreciation vs. Legg Mason Partners |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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