Correlation Between Calamos Global and Deutsche Small
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Deutsche Small 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 Deutsche Small 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 Deutsche Small Cap, you can compare the effects of market volatilities on Calamos Global and Deutsche Small 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 Deutsche Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Deutsche Small.
Diversification Opportunities for Calamos Global and Deutsche Small
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Deutsche is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Deutsche Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Small Cap 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 Deutsche Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Small Cap has no effect on the direction of Calamos Global i.e., Calamos Global and Deutsche Small go up and down completely randomly.
Pair Corralation between Calamos Global and Deutsche Small
Assuming the 90 days horizon Calamos Global is expected to generate 1.8 times less return on investment than Deutsche Small. But when comparing it to its historical volatility, Calamos Global Equity is 1.11 times less risky than Deutsche Small. It trades about 0.05 of its potential returns per unit of risk. Deutsche Small Cap is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,307 in Deutsche Small Cap on September 3, 2024 and sell it today you would earn a total of 394.00 from holding Deutsche Small Cap or generate 11.91% 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. Deutsche Small Cap
Performance |
| Timeline |
| Calamos Global Equity |
| Deutsche Small Cap |
Calamos Global and Deutsche Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Deutsche Small
The main advantage of trading using opposite Calamos Global and Deutsche Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Deutsche Small 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 Deutsche Small will offset losses from the drop in Deutsche Small'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 |
| Deutsche Small vs. Angel Oak Ultrashort | Deutsche Small vs. Calvert Short Duration | Deutsche Small vs. Astor Longshort Fund | Deutsche Small vs. Maryland Short Term Tax Free |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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