Correlation Between Calamos Global and Pimco Emerging
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Pimco Emerging 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 Pimco Emerging 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 Pimco Emerging Local, you can compare the effects of market volatilities on Calamos Global and Pimco Emerging 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 Pimco Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Pimco Emerging.
Diversification Opportunities for Calamos Global and Pimco Emerging
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Pimco is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Pimco Emerging Local in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Emerging Local 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 Pimco Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Emerging Local has no effect on the direction of Calamos Global i.e., Calamos Global and Pimco Emerging go up and down completely randomly.
Pair Corralation between Calamos Global and Pimco Emerging
Assuming the 90 days horizon Calamos Global Equity is expected to generate 1.47 times more return on investment than Pimco Emerging. However, Calamos Global is 1.47 times more volatile than Pimco Emerging Local. It trades about 0.36 of its potential returns per unit of risk. Pimco Emerging Local is currently generating about -0.1 per unit of risk. If you would invest 1,863 in Calamos Global Equity on September 3, 2024 and sell it today you would earn a total of 103.00 from holding Calamos Global Equity or generate 5.53% 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. Pimco Emerging Local
Performance |
| Timeline |
| Calamos Global Equity |
| Pimco Emerging Local |
Calamos Global and Pimco Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Pimco Emerging
The main advantage of trading using opposite Calamos Global and Pimco Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Pimco Emerging 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 Pimco Emerging will offset losses from the drop in Pimco Emerging's long position.| Calamos Global vs. Allianzgi Technology Fund | Calamos Global vs. Firsthand Technology Opportunities | Calamos Global vs. Red Oak Technology | Calamos Global vs. Mfs Technology Fund |
| Pimco Emerging vs. Sprott Gold Equity | Pimco Emerging vs. Fidelity Advisor Gold | Pimco Emerging vs. Gabelli Gold Fund | Pimco Emerging vs. Global Gold 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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