Correlation Between Calamos International and Fidelity International
Can any of the company-specific risk be diversified away by investing in both Calamos International and Fidelity International 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 Fidelity International 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 Fidelity International Growth, you can compare the effects of market volatilities on Calamos International and Fidelity International 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 Fidelity International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos International and Fidelity International.
Diversification Opportunities for Calamos International and Fidelity International
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and Fidelity is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Calamos International Growth and Fidelity International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity International 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 Fidelity International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity International has no effect on the direction of Calamos International i.e., Calamos International and Fidelity International go up and down completely randomly.
Pair Corralation between Calamos International and Fidelity International
Assuming the 90 days horizon Calamos International Growth is expected to generate 1.14 times more return on investment than Fidelity International. However, Calamos International is 1.14 times more volatile than Fidelity International Growth. It trades about 0.06 of its potential returns per unit of risk. Fidelity International Growth is currently generating about 0.06 per unit of risk. If you would invest 1,697 in Calamos International Growth on September 4, 2024 and sell it today you would earn a total of 542.00 from holding Calamos International Growth or generate 31.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos International Growth vs. Fidelity International Growth
Performance |
| Timeline |
| Calamos International |
| Fidelity International |
Calamos International and Fidelity International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos International and Fidelity International
The main advantage of trading using opposite Calamos International and Fidelity International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos International position performs unexpectedly, Fidelity International 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 Fidelity International will offset losses from the drop in Fidelity International'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 |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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