Correlation Between Calamos Global and Lazard Enhanced
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Lazard Enhanced 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 Lazard Enhanced 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 Lazard Enhanced Opportunities, you can compare the effects of market volatilities on Calamos Global and Lazard Enhanced 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 Lazard Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Lazard Enhanced.
Diversification Opportunities for Calamos Global and Lazard Enhanced
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Lazard is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Lazard Enhanced Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Enhanced Oppo 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 Lazard Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Enhanced Oppo has no effect on the direction of Calamos Global i.e., Calamos Global and Lazard Enhanced go up and down completely randomly.
Pair Corralation between Calamos Global and Lazard Enhanced
Assuming the 90 days horizon Calamos Global Equity is expected to generate 5.71 times more return on investment than Lazard Enhanced. However, Calamos Global is 5.71 times more volatile than Lazard Enhanced Opportunities. It trades about 0.12 of its potential returns per unit of risk. Lazard Enhanced Opportunities is currently generating about 0.21 per unit of risk. If you would invest 1,169 in Calamos Global Equity on September 14, 2024 and sell it today you would earn a total of 829.00 from holding Calamos Global Equity or generate 70.92% 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. Lazard Enhanced Opportunities
Performance |
| Timeline |
| Calamos Global Equity |
| Lazard Enhanced Oppo |
Calamos Global and Lazard Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Lazard Enhanced
The main advantage of trading using opposite Calamos Global and Lazard Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Lazard Enhanced 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 Lazard Enhanced will offset losses from the drop in Lazard Enhanced's long position.| Calamos Global vs. Gmo Global Equity | Calamos Global vs. Ab Select Equity | Calamos Global vs. Qs Global Equity | Calamos Global vs. Locorr Dynamic Equity |
| Lazard Enhanced vs. Qs Global Equity | Lazard Enhanced vs. Dreyfusnewton International Equity | Lazard Enhanced vs. Calamos Global Equity | Lazard Enhanced vs. Gmo Global 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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