Correlation Between Calamos International and Elfun Diversified
Can any of the company-specific risk be diversified away by investing in both Calamos International and Elfun Diversified 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 Elfun Diversified 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 Elfun Diversified Fund, you can compare the effects of market volatilities on Calamos International and Elfun Diversified 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 Elfun Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos International and Elfun Diversified.
Diversification Opportunities for Calamos International and Elfun Diversified
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and Elfun is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Calamos International Growth and Elfun Diversified Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elfun Diversified 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 Elfun Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elfun Diversified has no effect on the direction of Calamos International i.e., Calamos International and Elfun Diversified go up and down completely randomly.
Pair Corralation between Calamos International and Elfun Diversified
Assuming the 90 days horizon Calamos International is expected to generate 1.69 times less return on investment than Elfun Diversified. In addition to that, Calamos International is 2.4 times more volatile than Elfun Diversified Fund. It trades about 0.06 of its total potential returns per unit of risk. Elfun Diversified Fund is currently generating about 0.24 per unit of volatility. If you would invest 2,165 in Elfun Diversified Fund on September 15, 2024 and sell it today you would earn a total of 35.00 from holding Elfun Diversified Fund or generate 1.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Calamos International Growth vs. Elfun Diversified Fund
Performance |
| Timeline |
| Calamos International |
| Elfun Diversified |
Calamos International and Elfun Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos International and Elfun Diversified
The main advantage of trading using opposite Calamos International and Elfun Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos International position performs unexpectedly, Elfun Diversified 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 Elfun Diversified will offset losses from the drop in Elfun Diversified's long position.The idea behind Calamos International Growth and Elfun Diversified Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Elfun Diversified vs. State Street Target | Elfun Diversified vs. State Street Target | Elfun Diversified vs. Ssga International Stock | Elfun Diversified vs. State Street Target |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |