Correlation Between Calamos Global and Muzinich
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Muzinich 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 Muzinich 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 Muzinich High Yield, you can compare the effects of market volatilities on Calamos Global and Muzinich 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 Muzinich. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Muzinich.
Diversification Opportunities for Calamos Global and Muzinich
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Muzinich is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Muzinich High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muzinich High Yield 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 Muzinich. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Muzinich High Yield has no effect on the direction of Calamos Global i.e., Calamos Global and Muzinich go up and down completely randomly.
Pair Corralation between Calamos Global and Muzinich
Assuming the 90 days horizon Calamos Global Equity is expected to generate 4.2 times more return on investment than Muzinich. However, Calamos Global is 4.2 times more volatile than Muzinich High Yield. It trades about 0.1 of its potential returns per unit of risk. Muzinich High Yield is currently generating about 0.13 per unit of risk. If you would invest 1,235 in Calamos Global Equity on September 5, 2024 and sell it today you would earn a total of 743.00 from holding Calamos Global Equity or generate 60.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Global Equity vs. Muzinich High Yield
Performance |
| Timeline |
| Calamos Global Equity |
| Muzinich High Yield |
Calamos Global and Muzinich Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Muzinich
The main advantage of trading using opposite Calamos Global and Muzinich positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Muzinich 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 Muzinich will offset losses from the drop in Muzinich's long position.| Calamos Global vs. Calamos Dynamic Convertible | Calamos Global vs. Putnam Convertible Incm Gwth | Calamos Global vs. Rationalpier 88 Convertible | Calamos Global vs. Absolute Convertible Arbitrage |
| Muzinich vs. Gmo Global Equity | Muzinich vs. Calamos Global Equity | Muzinich vs. Jpmorgan Equity Income | Muzinich vs. The Hartford 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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