Correlation Between Calamos Global and Legg Mason
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Legg Mason 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 Legg Mason 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 Legg Mason Global, you can compare the effects of market volatilities on Calamos Global and Legg Mason 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 Legg Mason. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Legg Mason.
Diversification Opportunities for Calamos Global and Legg Mason
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calamos and Legg is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Legg Mason Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Legg Mason 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 Legg Mason. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Legg Mason Global has no effect on the direction of Calamos Global i.e., Calamos Global and Legg Mason go up and down completely randomly.
Pair Corralation between Calamos Global and Legg Mason
Assuming the 90 days horizon Calamos Global Equity is expected to generate 3.52 times more return on investment than Legg Mason. However, Calamos Global is 3.52 times more volatile than Legg Mason Global. It trades about 0.21 of its potential returns per unit of risk. Legg Mason Global is currently generating about 0.25 per unit of risk. If you would invest 1,938 in Calamos Global Equity on September 13, 2024 and sell it today you would earn a total of 60.00 from holding Calamos Global Equity or generate 3.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Global Equity vs. Legg Mason Global
Performance |
| Timeline |
| Calamos Global Equity |
| Legg Mason Global |
Calamos Global and Legg Mason Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Legg Mason
The main advantage of trading using opposite Calamos Global and Legg Mason positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Legg Mason 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 Legg Mason will offset losses from the drop in Legg Mason'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 |
| Legg Mason vs. Multimedia Portfolio Multimedia | Legg Mason vs. Rbc Global Equity | Legg Mason vs. Gmo Global Equity | Legg Mason vs. Ms Global Fixed |
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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