Correlation Between Calamos Global and Payden Global
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Payden Global 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 Payden Global 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 Payden Global Fixed, you can compare the effects of market volatilities on Calamos Global and Payden Global 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 Payden Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Payden Global.
Diversification Opportunities for Calamos Global and Payden Global
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calamos and Payden is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Payden Global Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payden Global Fixed 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 Payden Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payden Global Fixed has no effect on the direction of Calamos Global i.e., Calamos Global and Payden Global go up and down completely randomly.
Pair Corralation between Calamos Global and Payden Global
Assuming the 90 days horizon Calamos Global Equity is expected to generate 3.9 times more return on investment than Payden Global. However, Calamos Global is 3.9 times more volatile than Payden Global Fixed. It trades about 0.14 of its potential returns per unit of risk. Payden Global Fixed is currently generating about 0.15 per unit of risk. If you would invest 1,336 in Calamos Global Equity on September 1, 2024 and sell it today you would earn a total of 612.00 from holding Calamos Global Equity or generate 45.81% 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. Payden Global Fixed
Performance |
| Timeline |
| Calamos Global Equity |
| Payden Global Fixed |
Calamos Global and Payden Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Payden Global
The main advantage of trading using opposite Calamos Global and Payden Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Payden Global 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 Payden Global will offset losses from the drop in Payden Global's long position.| Calamos Global vs. Rbc Emerging Markets | Calamos Global vs. Western Asset Diversified | Calamos Global vs. Aqr Long Short Equity | Calamos Global vs. Transamerica Emerging Markets |
| Payden Global vs. Small Pany Growth | Payden Global vs. Legg Mason Partners | Payden Global vs. L Abbett Growth | Payden Global vs. T Rowe Price |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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