Correlation Between Calamos Global and State Farm
Can any of the company-specific risk be diversified away by investing in both Calamos Global and State Farm 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 State Farm 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 State Farm Municipal, you can compare the effects of market volatilities on Calamos Global and State Farm 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 State Farm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and State Farm.
Diversification Opportunities for Calamos Global and State Farm
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and State is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and State Farm Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Farm Municipal 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 State Farm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Farm Municipal has no effect on the direction of Calamos Global i.e., Calamos Global and State Farm go up and down completely randomly.
Pair Corralation between Calamos Global and State Farm
Assuming the 90 days horizon Calamos Global is expected to generate 4.4 times less return on investment than State Farm. In addition to that, Calamos Global is 6.6 times more volatile than State Farm Municipal. It trades about 0.01 of its total potential returns per unit of risk. State Farm Municipal is currently generating about 0.3 per unit of volatility. If you would invest 807.00 in State Farm Municipal on November 28, 2024 and sell it today you would earn a total of 8.00 from holding State Farm Municipal or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Global Equity vs. State Farm Municipal
Performance |
| Timeline |
| Calamos Global Equity |
| State Farm Municipal |
Calamos Global and State Farm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and State Farm
The main advantage of trading using opposite Calamos Global and State Farm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, State Farm 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 State Farm will offset losses from the drop in State Farm's long position.| Calamos Global vs. Tiaa Cref Real Estate | Calamos Global vs. Short Real Estate | Calamos Global vs. Real Estate Securities | Calamos Global vs. Vanguard Reit Index |
| State Farm vs. International Investors Gold | State Farm vs. First Eagle Gold | State Farm vs. Gamco Global Gold | State Farm vs. Invesco Gold Special |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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