Correlation Between Calamos Global and Templeton World
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Templeton 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 Templeton 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 Templeton World Fund, you can compare the effects of market volatilities on Calamos Global and Templeton 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 Templeton World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Templeton World.
Diversification Opportunities for Calamos Global and Templeton World
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and Templeton is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Templeton World Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton 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 Templeton World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton World has no effect on the direction of Calamos Global i.e., Calamos Global and Templeton World go up and down completely randomly.
Pair Corralation between Calamos Global and Templeton World
Assuming the 90 days horizon Calamos Global Equity is expected to generate 1.1 times more return on investment than Templeton World. However, Calamos Global is 1.1 times more volatile than Templeton World Fund. It trades about 0.12 of its potential returns per unit of risk. Templeton World Fund is currently generating about 0.12 per unit of risk. If you would invest 1,165 in Calamos Global Equity on September 12, 2024 and sell it today you would earn a total of 829.00 from holding Calamos Global Equity or generate 71.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Calamos Global Equity vs. Templeton World Fund
Performance |
| Timeline |
| Calamos Global Equity |
| Templeton World |
Calamos Global and Templeton World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Templeton World
The main advantage of trading using opposite Calamos Global and Templeton World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Templeton 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 Templeton World will offset losses from the drop in Templeton World's long position.| Calamos Global vs. American Funds New | Calamos Global vs. American Funds New | Calamos Global vs. New Perspective Fund | Calamos Global vs. New Perspective Fund |
| Templeton World vs. Gabelli Convertible And | Templeton World vs. Calamos Dynamic Convertible | Templeton World vs. Virtus Convertible | Templeton World vs. Allianzgi Convertible Income |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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