Correlation Between Calamos Global and Ridgeworth Ceredex
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Ridgeworth Ceredex 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 Ridgeworth Ceredex 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 Ridgeworth Ceredex Mid Cap, you can compare the effects of market volatilities on Calamos Global and Ridgeworth Ceredex 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 Ridgeworth Ceredex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Ridgeworth Ceredex.
Diversification Opportunities for Calamos Global and Ridgeworth Ceredex
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Ridgeworth is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Ridgeworth Ceredex Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ridgeworth Ceredex Mid 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 Ridgeworth Ceredex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ridgeworth Ceredex Mid has no effect on the direction of Calamos Global i.e., Calamos Global and Ridgeworth Ceredex go up and down completely randomly.
Pair Corralation between Calamos Global and Ridgeworth Ceredex
Assuming the 90 days horizon Calamos Global is expected to generate 1.21 times less return on investment than Ridgeworth Ceredex. But when comparing it to its historical volatility, Calamos Global Equity is 1.56 times less risky than Ridgeworth Ceredex. It trades about 0.36 of its potential returns per unit of risk. Ridgeworth Ceredex Mid Cap is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,294 in Ridgeworth Ceredex Mid Cap on September 3, 2024 and sell it today you would earn a total of 86.00 from holding Ridgeworth Ceredex Mid Cap or generate 6.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Global Equity vs. Ridgeworth Ceredex Mid Cap
Performance |
| Timeline |
| Calamos Global Equity |
| Ridgeworth Ceredex Mid |
Calamos Global and Ridgeworth Ceredex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Ridgeworth Ceredex
The main advantage of trading using opposite Calamos Global and Ridgeworth Ceredex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Ridgeworth Ceredex 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 Ridgeworth Ceredex will offset losses from the drop in Ridgeworth Ceredex'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 |
| Ridgeworth Ceredex vs. Calamos Global Equity | Ridgeworth Ceredex vs. Ms Global Fixed | Ridgeworth Ceredex vs. The Fixed Income | Ridgeworth Ceredex vs. Multimedia Portfolio Multimedia |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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