Correlation Between Calamos International and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Calamos International and Calamos Global 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 Calamos Global 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 Calamos Global Equity, you can compare the effects of market volatilities on Calamos International and Calamos Global 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 Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos International and Calamos Global.
Diversification Opportunities for Calamos International and Calamos Global
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calamos and Calamos is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Calamos International Growth and Calamos Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Equity 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 Calamos Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Global Equity has no effect on the direction of Calamos International i.e., Calamos International and Calamos Global go up and down completely randomly.
Pair Corralation between Calamos International and Calamos Global
Assuming the 90 days horizon Calamos International is expected to generate 1.48 times less return on investment than Calamos Global. In addition to that, Calamos International is 1.01 times more volatile than Calamos Global Equity. It trades about 0.06 of its total potential returns per unit of risk. Calamos Global Equity is currently generating about 0.09 per unit of volatility. If you would invest 1,210 in Calamos Global Equity on August 26, 2024 and sell it today you would earn a total of 621.00 from holding Calamos Global Equity or generate 51.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos International Growth vs. Calamos Global Equity
Performance |
| Timeline |
| Calamos International |
| Calamos Global Equity |
Calamos International and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos International and Calamos Global
The main advantage of trading using opposite Calamos International and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos International position performs unexpectedly, Calamos Global 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 Calamos Global will offset losses from the drop in Calamos Global's long position.| Calamos International vs. Calamos Global Growth | Calamos International vs. Calamos Growth Income | Calamos International vs. Calamos Opportunistic Value | Calamos International vs. Calamos High Income |
| Calamos Global vs. Calamos International Growth | Calamos Global vs. Calamos Global Growth | Calamos Global vs. Calamos Evolving World | Calamos Global vs. Calamos Market Neutral |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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