Correlation Between Calamos Global and First Trust
Can any of the company-specific risk be diversified away by investing in both Calamos Global and First Trust 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 First Trust 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 First Trust Intermediate, you can compare the effects of market volatilities on Calamos Global and First Trust 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 First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and First Trust.
Diversification Opportunities for Calamos Global and First Trust
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and First is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Dynamic and First Trust Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Intermediate 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 First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust Intermediate has no effect on the direction of Calamos Global i.e., Calamos Global and First Trust go up and down completely randomly.
Pair Corralation between Calamos Global and First Trust
Considering the 90-day investment horizon Calamos Global Dynamic is expected to generate 1.19 times more return on investment than First Trust. However, Calamos Global is 1.19 times more volatile than First Trust Intermediate. It trades about 0.22 of its potential returns per unit of risk. First Trust Intermediate is currently generating about -0.03 per unit of risk. If you would invest 688.00 in Calamos Global Dynamic on September 18, 2024 and sell it today you would earn a total of 15.00 from holding Calamos Global Dynamic or generate 2.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Global Dynamic vs. First Trust Intermediate
Performance |
| Timeline |
| Calamos Global Dynamic |
| First Trust Intermediate |
Calamos Global and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and First Trust
The main advantage of trading using opposite Calamos Global and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, First Trust 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 First Trust will offset losses from the drop in First Trust'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 |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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