Correlation Between Calamos Global and Vanguard Equity
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Vanguard Equity 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 Vanguard Equity 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 Vanguard Equity Income, you can compare the effects of market volatilities on Calamos Global and Vanguard Equity 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 Vanguard Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Vanguard Equity.
Diversification Opportunities for Calamos Global and Vanguard Equity
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Vanguard is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Vanguard Equity Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Equity Income 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 Vanguard Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Equity Income has no effect on the direction of Calamos Global i.e., Calamos Global and Vanguard Equity go up and down completely randomly.
Pair Corralation between Calamos Global and Vanguard Equity
Assuming the 90 days horizon Calamos Global Equity is expected to generate 0.97 times more return on investment than Vanguard Equity. However, Calamos Global Equity is 1.03 times less risky than Vanguard Equity. It trades about 0.31 of its potential returns per unit of risk. Vanguard Equity Income is currently generating about 0.3 per unit of risk. If you would invest 1,859 in Calamos Global Equity on September 1, 2024 and sell it today you would earn a total of 89.00 from holding Calamos Global Equity or generate 4.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Calamos Global Equity vs. Vanguard Equity Income
Performance |
| Timeline |
| Calamos Global Equity |
| Vanguard Equity Income |
Calamos Global and Vanguard Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Vanguard Equity
The main advantage of trading using opposite Calamos Global and Vanguard Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Vanguard Equity 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 Vanguard Equity will offset losses from the drop in Vanguard Equity's long position.| Calamos Global vs. Rbc Emerging Markets | Calamos Global vs. Western Asset Diversified | Calamos Global vs. Aqr Long Short Equity | Calamos Global vs. Transamerica Emerging Markets |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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