Correlation Between Calamos Global and Conservative Balanced
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Conservative Balanced 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 Conservative Balanced 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 Conservative Balanced Allocation, you can compare the effects of market volatilities on Calamos Global and Conservative Balanced 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 Conservative Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Conservative Balanced.
Diversification Opportunities for Calamos Global and Conservative Balanced
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Conservative is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Conservative Balanced Allocati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conservative Balanced 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 Conservative Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conservative Balanced has no effect on the direction of Calamos Global i.e., Calamos Global and Conservative Balanced go up and down completely randomly.
Pair Corralation between Calamos Global and Conservative Balanced
Assuming the 90 days horizon Calamos Global Equity is expected to generate 1.86 times more return on investment than Conservative Balanced. However, Calamos Global is 1.86 times more volatile than Conservative Balanced Allocation. It trades about 0.14 of its potential returns per unit of risk. Conservative Balanced Allocation is currently generating about 0.21 per unit of risk. If you would invest 1,899 in Calamos Global Equity on August 29, 2024 and sell it today you would earn a total of 50.00 from holding Calamos Global Equity or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Global Equity vs. Conservative Balanced Allocati
Performance |
| Timeline |
| Calamos Global Equity |
| Conservative Balanced |
Calamos Global and Conservative Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Conservative Balanced
The main advantage of trading using opposite Calamos Global and Conservative Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Conservative Balanced 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 Conservative Balanced will offset losses from the drop in Conservative Balanced's long position.| Calamos Global vs. Conservative Balanced Allocation | Calamos Global vs. Pimco Diversified Income | Calamos Global vs. Huber Capital Diversified | Calamos Global vs. Jhancock Diversified Macro |
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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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