Correlation Between Calamos Global and Great-west Bond
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Great-west Bond 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 Great-west Bond 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 Great West Bond Index, you can compare the effects of market volatilities on Calamos Global and Great-west Bond 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 Great-west Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Great-west Bond.
Diversification Opportunities for Calamos Global and Great-west Bond
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Calamos and Great-west is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Great West Bond Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West 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 Great-west Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West Bond has no effect on the direction of Calamos Global i.e., Calamos Global and Great-west Bond go up and down completely randomly.
Pair Corralation between Calamos Global and Great-west Bond
Assuming the 90 days horizon Calamos Global Equity is expected to generate 2.34 times more return on investment than Great-west Bond. However, Calamos Global is 2.34 times more volatile than Great West Bond Index. It trades about 0.1 of its potential returns per unit of risk. Great West Bond Index is currently generating about 0.03 per unit of risk. If you would invest 1,262 in Calamos Global Equity on September 2, 2024 and sell it today you would earn a total of 704.00 from holding Calamos Global Equity or generate 55.78% 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. Great West Bond Index
Performance |
| Timeline |
| Calamos Global Equity |
| Great West Bond |
Calamos Global and Great-west Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Great-west Bond
The main advantage of trading using opposite Calamos Global and Great-west Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Great-west Bond 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 Great-west Bond will offset losses from the drop in Great-west Bond's long position.| Calamos Global vs. Calamos International Growth | Calamos Global vs. Calamos Global Growth | Calamos Global vs. Calamos Evolving World | Calamos Global vs. Calamos Market Neutral |
| Great-west Bond vs. Asg Managed Futures | Great-west Bond vs. Ab Bond Inflation | Great-west Bond vs. Nationwide Inflation Protected Securities | Great-west Bond vs. Guidepath Managed Futures |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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