Correlation Between Calamos Global and State Street
Can any of the company-specific risk be diversified away by investing in both Calamos Global and State Street 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 Street 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 Street Target, you can compare the effects of market volatilities on Calamos Global and State Street 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 Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and State Street.
Diversification Opportunities for Calamos Global and State Street
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and State is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and State Street Target in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Street Target 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 Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Street Target has no effect on the direction of Calamos Global i.e., Calamos Global and State Street go up and down completely randomly.
Pair Corralation between Calamos Global and State Street
Assuming the 90 days horizon Calamos Global Equity is expected to generate 1.49 times more return on investment than State Street. However, Calamos Global is 1.49 times more volatile than State Street Target. It trades about 0.23 of its potential returns per unit of risk. State Street Target is currently generating about 0.19 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Global Equity vs. State Street Target
Performance |
| Timeline |
| Calamos Global Equity |
| State Street Target |
Calamos Global and State Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and State Street
The main advantage of trading using opposite Calamos Global and State Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, State Street 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 Street will offset losses from the drop in State Street'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 |
| State Street vs. Touchstone International Equity | State Street vs. Calamos Global Equity | State Street vs. Huber Capital Equity | State Street 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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