Correlation Between Calamos International and Commonwealth Real
Can any of the company-specific risk be diversified away by investing in both Calamos International and Commonwealth Real 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 International and Commonwealth Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos International Growth and Commonwealth Real Estate, you can compare the effects of market volatilities on Calamos International and Commonwealth Real 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 International with a short position of Commonwealth Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos International and Commonwealth Real.
Diversification Opportunities for Calamos International and Commonwealth Real
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Commonwealth is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Calamos International Growth and Commonwealth Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commonwealth Real Estate and Calamos International 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 International Growth are associated (or correlated) with Commonwealth Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commonwealth Real Estate has no effect on the direction of Calamos International i.e., Calamos International and Commonwealth Real go up and down completely randomly.
Pair Corralation between Calamos International and Commonwealth Real
Assuming the 90 days horizon Calamos International Growth is expected to generate 0.94 times more return on investment than Commonwealth Real. However, Calamos International Growth is 1.06 times less risky than Commonwealth Real. It trades about 0.01 of its potential returns per unit of risk. Commonwealth Real Estate is currently generating about -0.01 per unit of risk. If you would invest 2,378 in Calamos International Growth on September 12, 2024 and sell it today you would earn a total of 4.00 from holding Calamos International Growth or generate 0.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Calamos International Growth vs. Commonwealth Real Estate
Performance |
| Timeline |
| Calamos International |
| Commonwealth Real Estate |
Calamos International and Commonwealth Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos International and Commonwealth Real
The main advantage of trading using opposite Calamos International and Commonwealth Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos International position performs unexpectedly, Commonwealth Real 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 Commonwealth Real will offset losses from the drop in Commonwealth Real's long position.| Calamos International vs. Multimedia Portfolio Multimedia | Calamos International vs. Rbc Global Equity | Calamos International vs. Calamos Global Equity | Calamos International vs. Balanced Fund Retail |
| Commonwealth Real vs. T Rowe Price | Commonwealth Real vs. T Rowe Price | Commonwealth Real vs. T Rowe Price | Commonwealth Real vs. T Rowe Price |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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