Correlation Between Calamos Global and Total Return
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Total Return 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 Total Return 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 Total Return Bond, you can compare the effects of market volatilities on Calamos Global and Total Return 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 Total Return. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Total Return.
Diversification Opportunities for Calamos Global and Total Return
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Total is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Total Return Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total Return Bond 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 Total Return. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total Return Bond has no effect on the direction of Calamos Global i.e., Calamos Global and Total Return go up and down completely randomly.
Pair Corralation between Calamos Global and Total Return
Assuming the 90 days horizon Calamos Global Equity is expected to generate 2.18 times more return on investment than Total Return. However, Calamos Global is 2.18 times more volatile than Total Return Bond. It trades about 0.18 of its potential returns per unit of risk. Total Return Bond is currently generating about 0.11 per unit of risk. If you would invest 1,947 in Calamos Global Equity on September 12, 2024 and sell it today you would earn a total of 47.00 from holding Calamos Global Equity or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Global Equity vs. Total Return Bond
Performance |
| Timeline |
| Calamos Global Equity |
| Total Return Bond |
Calamos Global and Total Return Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Total Return
The main advantage of trading using opposite Calamos Global and Total Return positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Total Return 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 Total Return will offset losses from the drop in Total Return'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 |
| Total Return vs. Leggmason Partners Institutional | Total Return vs. Iaadx | Total Return vs. Acm Dynamic Opportunity | Total Return vs. Rbb Fund |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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