Correlation Between Calamos Global and Deutsche Global
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Deutsche Global 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 Global 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 Global Infrastructure, you can compare the effects of market volatilities on Calamos Global and Deutsche Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Deutsche Global.
Diversification Opportunities for Calamos Global and Deutsche Global
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Deutsche is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Deutsche Global Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Global Infr 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Global Infr has no effect on the direction of Calamos Global i.e., Calamos Global and Deutsche Global go up and down completely randomly.
Pair Corralation between Calamos Global and Deutsche Global
Assuming the 90 days horizon Calamos Global Equity is expected to generate 1.05 times more return on investment than Deutsche Global. However, Calamos Global is 1.05 times more volatile than Deutsche Global Infrastructure. It trades about 0.36 of its potential returns per unit of risk. Deutsche Global Infrastructure is currently generating about 0.26 per unit of risk. If you would invest 1,863 in Calamos Global Equity on September 4, 2024 and sell it today you would earn a total of 103.00 from holding Calamos Global Equity or generate 5.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Calamos Global Equity vs. Deutsche Global Infrastructure
Performance |
| Timeline |
| Calamos Global Equity |
| Deutsche Global Infr |
Calamos Global and Deutsche Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Deutsche Global
The main advantage of trading using opposite Calamos Global and Deutsche Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Deutsche Global 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 Global will offset losses from the drop in Deutsche Global's long position.| Calamos Global vs. 1919 Financial Services | Calamos Global vs. Vanguard Financials Index | Calamos Global vs. Royce Global Financial | Calamos Global vs. Fidelity Advisor Financial |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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