Correlation Between Calamos Global and Calamos Strategic
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Calamos Strategic 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 Calamos Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Global Dynamic and Calamos Strategic Total, you can compare the effects of market volatilities on Calamos Global and Calamos Strategic 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 Calamos Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Calamos Strategic.
Diversification Opportunities for Calamos Global and Calamos Strategic
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Calamos is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Dynamic and Calamos Strategic Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Strategic Total 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 Dynamic are associated (or correlated) with Calamos Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Strategic Total has no effect on the direction of Calamos Global i.e., Calamos Global and Calamos Strategic go up and down completely randomly.
Pair Corralation between Calamos Global and Calamos Strategic
Considering the 90-day investment horizon Calamos Global is expected to generate 1.33 times less return on investment than Calamos Strategic. But when comparing it to its historical volatility, Calamos Global Dynamic is 1.01 times less risky than Calamos Strategic. It trades about 0.07 of its potential returns per unit of risk. Calamos Strategic Total is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,207 in Calamos Strategic Total on August 24, 2024 and sell it today you would earn a total of 586.00 from holding Calamos Strategic Total or generate 48.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Global Dynamic vs. Calamos Strategic Total
Performance |
| Timeline |
| Calamos Global Dynamic |
| Calamos Strategic Total |
Calamos Global and Calamos Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Calamos Strategic
The main advantage of trading using opposite Calamos Global and Calamos Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Calamos Strategic 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 Calamos Strategic will offset losses from the drop in Calamos Strategic's long position.| Calamos Global vs. Calamos Convertible And | Calamos Global vs. Calamos Strategic Total | Calamos Global vs. Calamos Dynamic Convertible | Calamos Global vs. Calamos LongShort Equity |
| Calamos Strategic vs. Calamos Convertible Opportunities | Calamos Strategic vs. Calamos Dynamic Convertible | Calamos Strategic vs. Calamos Global Dynamic | Calamos Strategic vs. Calamos LongShort Equity |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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