Correlation Between Calamos Global and Virtus Dividend
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Virtus Dividend 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 Virtus Dividend 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 Virtus Dividend Interest, you can compare the effects of market volatilities on Calamos Global and Virtus Dividend 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 Virtus Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Virtus Dividend.
Diversification Opportunities for Calamos Global and Virtus Dividend
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and Virtus is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Dynamic and Virtus Dividend Interest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Dividend Interest 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 Virtus Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Dividend Interest has no effect on the direction of Calamos Global i.e., Calamos Global and Virtus Dividend go up and down completely randomly.
Pair Corralation between Calamos Global and Virtus Dividend
Considering the 90-day investment horizon Calamos Global Dynamic is expected to generate 0.95 times more return on investment than Virtus Dividend. However, Calamos Global Dynamic is 1.05 times less risky than Virtus Dividend. It trades about 0.22 of its potential returns per unit of risk. Virtus Dividend Interest is currently generating about 0.02 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 | 95.24% |
| Values | Daily Returns |
Calamos Global Dynamic vs. Virtus Dividend Interest
Performance |
| Timeline |
| Calamos Global Dynamic |
| Virtus Dividend Interest |
Calamos Global and Virtus Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Virtus Dividend
The main advantage of trading using opposite Calamos Global and Virtus Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Virtus Dividend 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 Virtus Dividend will offset losses from the drop in Virtus Dividend'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 |
| Virtus Dividend vs. Blackrock Muniyield | Virtus Dividend vs. Blackrock Muni Intermediate | Virtus Dividend vs. Blackrock Muniyield Quality | Virtus Dividend vs. Blackrock Muniyield Quality |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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