Correlation Between Calamos Global and Smallcap World
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Smallcap World 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 Smallcap World 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 Smallcap World Fund, you can compare the effects of market volatilities on Calamos Global and Smallcap World 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 Smallcap World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Smallcap World.
Diversification Opportunities for Calamos Global and Smallcap World
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Smallcap is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Smallcap World Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smallcap World 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 Smallcap World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smallcap World has no effect on the direction of Calamos Global i.e., Calamos Global and Smallcap World go up and down completely randomly.
Pair Corralation between Calamos Global and Smallcap World
Assuming the 90 days horizon Calamos Global Equity is expected to generate 0.94 times more return on investment than Smallcap World. However, Calamos Global Equity is 1.06 times less risky than Smallcap World. It trades about 0.23 of its potential returns per unit of risk. Smallcap World Fund is currently generating about 0.13 per unit of risk. If you would invest 1,936 in Calamos Global Equity on September 14, 2024 and sell it today you would earn a total of 62.00 from holding Calamos Global Equity or generate 3.2% 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. Smallcap World Fund
Performance |
| Timeline |
| Calamos Global Equity |
| Smallcap World |
Calamos Global and Smallcap World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Smallcap World
The main advantage of trading using opposite Calamos Global and Smallcap World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Smallcap World 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 Smallcap World will offset losses from the drop in Smallcap World's long position.| Calamos Global vs. Gmo Global Equity | Calamos Global vs. Ab Select Equity | Calamos Global vs. Qs Global Equity | Calamos Global vs. Locorr Dynamic Equity |
| Smallcap World vs. Touchstone International Equity | Smallcap World vs. Ms Global Fixed | Smallcap World vs. Us Vector Equity | Smallcap World vs. Calamos Global 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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