Correlation Between Calamos Global and International Opportunity
Can any of the company-specific risk be diversified away by investing in both Calamos Global and International Opportunity 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 International Opportunity 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 International Opportunity Portfolio, you can compare the effects of market volatilities on Calamos Global and International Opportunity 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 International Opportunity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and International Opportunity.
Diversification Opportunities for Calamos Global and International Opportunity
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and International is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and International Opportunity Port in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Opportunity 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 International Opportunity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Opportunity has no effect on the direction of Calamos Global i.e., Calamos Global and International Opportunity go up and down completely randomly.
Pair Corralation between Calamos Global and International Opportunity
Assuming the 90 days horizon Calamos Global is expected to generate 1.27 times less return on investment than International Opportunity. In addition to that, Calamos Global is 1.22 times more volatile than International Opportunity Portfolio. It trades about 0.12 of its total potential returns per unit of risk. International Opportunity Portfolio is currently generating about 0.18 per unit of volatility. If you would invest 2,940 in International Opportunity Portfolio on September 12, 2024 and sell it today you would earn a total of 63.00 from holding International Opportunity Portfolio or generate 2.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Calamos Global Equity vs. International Opportunity Port
Performance |
| Timeline |
| Calamos Global Equity |
| International Opportunity |
Calamos Global and International Opportunity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and International Opportunity
The main advantage of trading using opposite Calamos Global and International Opportunity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, International Opportunity 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 International Opportunity will offset losses from the drop in International Opportunity'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 |
| International Opportunity vs. Locorr Dynamic Equity | International Opportunity vs. Us Vector Equity | International Opportunity vs. Cutler Equity | International Opportunity vs. Calamos 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |